Reviewing Entravision Communications (NYSE:EVC) & Netflix (NASDAQ:NFLX)

Netflix (NASDAQ:NFLX) and Entravision Communications (NYSE:EVC) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

80.9% of Netflix shares are owned by institutional investors. Comparatively, 69.5% of Entravision Communications shares are owned by institutional investors. 1.2% of Netflix shares are owned by insiders. Comparatively, 8.5% of Entravision Communications shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Netflix and Entravision Communications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netflix	0	16	34	2	2.73
Entravision Communications	1	0	0	0	1.00

Netflix presently has a consensus price target of $114.39, indicating a potential upside of 45.31%. Given Netflix’s stronger consensus rating and higher possible upside, research analysts plainly believe Netflix is more favorable than Entravision Communications.

Volatility & Risk

Netflix has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Entravision Communications has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500.

Valuation & Earnings

This table compares Netflix and Entravision Communications”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Netflix	$45.18 billion	7.34	$10.98 billion	$3.10	25.39
Entravision Communications	$447.59 million	1.88	-$79.17 million	($0.22)	-41.50

Netflix has higher revenue and earnings than Entravision Communications. Entravision Communications is trading at a lower price-to-earnings ratio than Netflix, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Netflix and Entravision Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Netflix	28.52%	40.92%	19.79%
Entravision Communications	-3.41%	-25.31%	-4.41%

Summary

Netflix beats Entravision Communications on 13 of the 15 factors compared between the two stocks.

About Netflix

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.

About Entravision Communications

Entravision Communications Corporation operates as an advertising solutions, media, and technology company worldwide. The company operates through three segments: Digital, Television, and Audio. It reaches and engages Hispanics in the United States. The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties. It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services; and Smadex, a programmatic ad purchasing platform that enables advertisers to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces. In addition, the company provides a mobile growth solution, such as managed services to advertisers to reach mobile device users; and digital advertising solutions for advertisers. Further, it owns and operates TelevisaUnivision-affiliated television stations. The company operates various television stations; radio stations; and Spanish-language radio stations. Entravision Communications Corporation was founded in 1996 and is headquartered in Santa Monica, California.