Charter Communications vs Netflix
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KIRA’s take AI analyst
I put Charter Communications and Netflix side by side, using each one’s latest annual report. Here is what stands out:
- Charter Communications is the larger business, with $54.8B of revenue in fiscal 2025 against $45.2B for Netflix.
- Netflix grew revenue faster (15.9%, against −0.6%).
- Netflix kept more of each dollar of sales as operating profit (29.5% operating margin, against 23.6%).
- Netflix turned more of its sales into free cash flow (20.9% FCF margin, against 8.1%).
- Netflix earned a higher return on the capital invested in it (36.7%, against 8.7%).
- Investors pay more for each dollar of Netflix’s earnings: a P/E of 18.5x against 2.7x for Charter Communications.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Charter Communications
CHTR
1/10
Share count change
Netflix
NFLX
9/10
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | CHTR FY25 | NFLX FY25 |
|---|---|---|
| Size | ||
| Market cap | $12.4B | $268.1B |
| Revenue | $54.8B | $45.2B |
| Free cash flow | $4.4B | $9.5B |
| Net income | $5.0B | $11.0B |
| Growth | ||
| Revenue growth | −0.6% | 15.9% |
| 5-year growth | 2.6% | 12.6% |
| Share count change | −5.2% | −1.1% |
| Profitability | ||
| Gross margin | — | 48.5% |
| Operating margin | 23.6% | 29.5% |
| Net margin | 9.1% | 24.3% |
| FCF margin | 8.1% | 20.9% |
| Return on capital | 8.7% | 36.7% |
| Return on equity | 31.5% | 42.8% |
| Balance sheet | ||
| Net debt | $95.2B | $5.4B |
| Net debt / EBITDA | 4.4x | 0.4x |
| Dividends and buybacks | $5.1B | $9.1B |
| Valuation & quality | ||
| P/E | 2.7x | 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.