Meta Platforms vs Netflix
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KIRA’s take AI analyst
I put Meta Platforms and Netflix side by side, using each one’s latest annual report. Here is what stands out:
- Meta Platforms is the larger business, with $201.0B of revenue in fiscal 2025 against $45.2B for Netflix, about 4.4 times as much.
- Meta Platforms grew revenue faster (22.2%, against 15.9%).
- Meta Platforms kept more of each dollar of sales as operating profit (41.4% operating margin, against 29.5%).
- Meta Platforms turned more of its sales into free cash flow (22.9% FCF margin, against 20.9%).
- Netflix earned a higher return on the capital invested in it (36.7%, against 35.5%).
- Investors pay more for each dollar of Meta Platforms’s earnings: a P/E of 21.5x against 18.5x for Netflix.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Meta Platforms
META
8/11
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginNet debt / EBITDAShare count change
Netflix
NFLX
3/11
Return on capitalReturn on equityPiotroski F-score
Side by side
Best in the row
| Latest fiscal year | META FY25 | NFLX FY25 |
|---|---|---|
| Size | ||
| Market cap | $1.62T | $268.1B |
| Revenue | $201.0B | $45.2B |
| Free cash flow | $46.1B | $9.5B |
| Net income | $60.5B | $11.0B |
| Growth | ||
| Revenue growth | 22.2% | 15.9% |
| 5-year growth | 18.5% | 12.6% |
| Share count change | −1.5% | −1.1% |
| Profitability | ||
| Gross margin | 82.0% | 48.5% |
| Operating margin | 41.4% | 29.5% |
| Net margin | 30.1% | 24.3% |
| FCF margin | 22.9% | 20.9% |
| Return on capital | 35.5% | 36.7% |
| Return on equity | 30.2% | 42.8% |
| Balance sheet | ||
| Net debt | −$21.7B | $5.4B |
| Net debt / EBITDA | −0.2x | 0.4x |
| Dividends and buybacks | $31.6B | $9.1B |
| Valuation & quality | ||
| P/E | 21.5x | 18.5x |
| Piotroski F-score | 6 | 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.