Chances are, you’re among the many to have missed out on the 250% rally in Netflix, Inc. (NASDAQ:NFLX) stock over the past year. That’s OK. We can’t all be Carl Icahn.
And you know what? We don’t need to be to know that the markets for filmed and televised entertainment are changing. We already stream more than 1 billion hours of programming monthly via Netflix, Inc. (NASDAQ:NFLX). YouTube, like Facebook Inc (NASDAQ:FB), serves more than 1 billion users. All signs point to a lasting shift that’s likely to benefit a variety of upstarts.
But which company is best positioned? How does Netflix, Inc. (NASDAQ:NFLX) stock compare to digital peers Amazon.com, Inc. (NASDAQ:AMZN)‘s Instant Video and Coinstar, Inc. (NASDAQ:CSTR)‘s Redbox. Here’s what the number say:
| Key Statistics | Netflix | Amazon | Coinstar |
| Current Share Price | $229.22 | $278.06 | $58.86 |
| Shares Outstanding | 58.4 million | 455.2 million | 27.4 million |
| Market Cap | $12.5 billion | $126.6 billion | $1.61 billion |
| Trailing P/E Ratio | 562.13 | Not available | 15.46 |
| PEG Ratio | 7.78 | 5.67 | 0.65 |
| Gross Margin | 27.5% | 25.4% | 31.2% |
| Cash From Operations | (8.5 million) | $4.25 billion | $450.1 million |
Sources: S&P Capital IQ, Yahoo! Finance.
And here’s what Fools say, going by the data available in our CAPS investor intelligence database:
| CAPS Category | Netflix | Amazon | Coinstar |
| CAPS Stars (out of 5) | ** | ** | *** |
| No. of CAPS Ratings | 9,708 | 6,837 | 740 |
| Bullish CAPS Ratings | 7,757 | 5,444 | 644 |
| Bearish CAPS Ratings | 1,951 | 1,393 | 96 |
| Bull Ratio | 79.9% | 79.6% | 87% |
Source: Motley Fool CAPS.
Why does Coinstar get the highest rating of the three? “A single-digit EV/EBITDA and EV/FCF valuation makes this a steal,” writes Foolish investor valuemagnet. ” The decline of the DVD is not good for the core Redbox business, however, it is more detrimental to Redbox’s competitors. I see this one outperforming, potentially becoming an acquisition candidate for a private equity player once again.”
What to do now
Which of these stocks to buy has as much to do with the type of investor you are as the opportunity. Those looking for a diversified high-growth opportunity are more likely to gravitate to Amazon, which has even taken to delivering groceries. Coinstar and its lowball multiples are more likely to appeal to cheapskates such as valuemagnet.
