Alphabet vs Netflix
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KIRA’s take AI analyst
I put Alphabet and Netflix side by side, using each one’s latest annual report. Here is what stands out:
- Alphabet is the larger business, with $402.8B of revenue in fiscal 2025 against $45.2B for Netflix, about 8.9 times as much.
- Netflix grew revenue faster (15.9%, against 15.1%).
- Alphabet kept more of each dollar of sales as operating profit (32.0% operating margin, against 29.5%).
- Netflix turned more of its sales into free cash flow (20.9% FCF margin, against 18.2%).
- Investors pay more for each dollar of Netflix’s earnings: a P/E of 18.5x against 15.9x for Alphabet.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Alphabet
GOOGL
8/11
5-year growthGross marginOperating marginNet marginReturn on capitalPiotroski F-scoreNet debt / EBITDAShare count change
Netflix
NFLX
3/11
Revenue growthFCF marginReturn on equity
Side by side
Best in the row
| Latest fiscal year | GOOGL FY25 | NFLX FY25 |
|---|---|---|
| Size | ||
| Market cap | $3.90T | $268.1B |
| Revenue | $402.8B | $45.2B |
| Free cash flow | $73.3B | $9.5B |
| Net income | $132.2B | $11.0B |
| Growth | ||
| Revenue growth | 15.1% | 15.9% |
| 5-year growth | 17.2% | 12.6% |
| Share count change | −1.7% | −1.1% |
| Profitability | ||
| Gross margin | 59.7% | 48.5% |
| Operating margin | 32.0% | 29.5% |
| Net margin | 32.8% | 24.3% |
| FCF margin | 18.2% | 20.9% |
| Return on capital | 36.7% | 36.7% |
| Return on equity | 35.7% | 42.8% |
| Balance sheet | ||
| Net debt | −$75.3B | $5.4B |
| Net debt / EBITDA | −0.5x | 0.4x |
| Dividends and buybacks | $55.8B | $9.1B |
| Valuation & quality | ||
| P/E | 15.9x | 18.5x |
| Piotroski F-score | 8 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.