Netflix (NFLX) and Roku (ROKU) both the companies have touched a new low recently, leaving the investors in dilemma.
Over the last 5 years, Netflix, which operates in CATV Systems, has grown its sales at 22.50% annual rate. Having a net profit margin of around 4.0%, Netflix makes more profit than an average company in the industry of CATV Systems. If efficiency is taken into account, it has 0.71 asset turnover ratio which represents the revenue amount it makes per dollar of assets. The ratio of financial leverage is 4.09 which suggests the asset base of the company is funded by debt.
The free cash flow yield of the stock is -0.51 which is the available cash amount to the investors before dividends. In addition, the company trades at 200.78 P/E ratio. Since the last 3 months, the insiders of Netflix have been net buyers, thus, dumping the net shares around -273,192.
On the other hand, the average analyst recommendation for Roku Inc is about 2.50. The insiders of Roku have sold 0 net shares over the last 3 months. Moreover, having better fundamentals, Roku scores higher on leverage metrics.