AppLovin Corporation vs Netflix, Inc.
APP wins the Tale of the Tape 7–2.
🏆 Tale of the Tape
Green = winner in each category. Higher is better except P/E (lower = cheaper).
Rolling Correlation
Low correlation — excellent diversification pair.
Fundamentals
| Metric | APP | NFLX |
|---|---|---|
| Market Cap | $206.0B | $362.2B |
| P/E Ratio | 53.2x | 27.7x |
| Forward P/E | 28.0x | 22.4x |
| P/B | 87.24x | 11.64x |
| Dividend Yield | — | — |
| Beta | 2.37 | 1.55 |
Quantitative Metrics
| Metric | APP | NFLX |
|---|---|---|
| DCF Fair Value | $153.84 | $40.62 |
| DCF Upside | -63.1% | -60.6% |
| Piotroski F | 9/9 | 6/9 |
| Altman Z | 18.98 | 11.77 |
| Beneish M | -2.45 | -2.16 |
| FCF Yield | 2.96% | 2.14% |
| Net Debt/EBITDA | 0.2x | 0.1x |
| ROIC | 55.5% | 23.9% |
| WACC | 19.6% | 14.7% |
| ROIC – WACC | 35.9pp | 9.2pp |
| Gross Margin | 87.9% | 48.5% |
| Net Margin | 60.8% | 24.3% |
| Rev Growth YoY | 70.0% | 15.8% |
| Sharpe (1Y) | 0.88 | 0.28 |
| Max Drawdown 3Y | -57.0% | — |
| FCF Payout Ratio | — | — |
APP Price
NFLX Price
ETF Exposure
More Comparisons
Quant metrics computed from financial statements and 1,200+ trading days. Correlation is Pearson coefficient on daily log returns. Not investment advice.
APP vs NFLX: Head-to-Head Analysis
AppLovin Corporation (APP) and Netflix, Inc. (NFLX) represent two companies in the Communication Services sector. In our quantitative Tale of the Tape scoring, APP leads 7–2 across nine fundamental and risk metrics including profitability, valuation, capital efficiency, and financial health.
In terms of capital efficiency, APP generates a return on invested capital (ROIC) of 55.5% compared to NFLX's 23.9%. This suggests APP is more effective at deploying capital to generate shareholder returns.
The 252-day rolling correlation between APP and NFLX is 0.234, indicating low correlation, making them an effective diversification pair in a portfolio context.
APP appears in 29 ETFs tracked by SecuritiesDB, while NFLX appears in 31 ETFs. Investors holding broad-market ETFs may already have indirect exposure to both stocks.
Frequently Asked Questions
Which stock is the better investment, APP or NFLX?
Our quantitative analysis compares APP and NFLX across nine fundamental dimensions. APP wins the Tale of the Tape 7–2. However, stock selection depends on your individual risk tolerance, time horizon, and portfolio context. These metrics are computed from SEC filings and market data — they are not investment recommendations.
Are APP and NFLX correlated?
The 252-day correlation between APP and NFLX is 0.234. They have low correlation, offering good diversification.
How is the Tale of the Tape scored?
The Tale of the Tape compares both stocks across nine categories: profitability (net margin), valuation (P/E), efficiency (ROIC), health (Piotroski F-Score), safety (Altman Z-Score), growth (revenue YoY), risk (Sharpe ratio), leverage (debt-to-equity), and cash generation (FCF yield). The stock that wins more categories takes the overall score. Lower P/E and lower debt-to-equity count as wins.