Meta Platforms, Inc. (META)vs Netflix, Inc. (NFLX)

Quick verdict

Scale is the first thing to register here: Meta carried a market value of about $1,582.6bn at the 4 September 2026 close against roughly $325.8bn for Netflix, and turned over $228.2bn of revenue in the twelve months to June 2026 versus $48.4bn — close to five times the size. Yet the two are priced within a whisker of each other, at 23.2 and 24.6 times trailing earnings, which is why the valuation factor lands as a tie. Growth also splits evenly once the starting points are examined. Our scoring gives Meta the edge overall (3.5 versus 2.5), on the strength of wider margins and a sturdier balance sheet, while Netflix takes the income factor on its 3.04% buyback yield and posts the higher returns on capital. Both carry a high-quality style tag.

At-a-glance comparison

Business model and revenue mix

Meta Platforms runs Facebook, Instagram, WhatsApp and Messenger, earning almost all of its revenue from advertising, with Reality Labs hardware alongside. That model shows in an 81.8% gross margin for the twelve months to June 2026 — the economics of serving ads against user-generated content. Netflix operates a subscription video-streaming service with an advertising tier, producing and licensing its own films and series; content amortisation is the reason its gross margin sits at 49.1%. Both sit in Communication Services and both are Nasdaq-listed US companies, but the industry labels differ — Internet Content & Information against Entertainment. The practical difference for an investor is the cost base: Meta's revenue is largely incremental once the platform exists, whereas Netflix must keep commissioning to hold subscribers. Meta booked $228.2bn of revenue against Netflix's $48.4bn over the same period.

Valuation

Our verdict on valuation is a tie, and the multiples explain why. On trailing earnings to June 2026, Meta trades at 23.2 times against Netflix's 24.6 — a gap too narrow to call. Sales multiples are similarly matched at 6.93 and 6.74. The two do diverge elsewhere: Netflix carries a price-to-book of 10.81 versus 6.06 at Meta, and an EV/EBITDA of 22.5 against 15.1, both reflecting Netflix's much smaller equity and asset base rather than a straightforward premium. Netflix offers the better free-cash-flow yield at 3.42% versus 2.59%. Meta's PEG of 0.58 pairs its earnings multiple with a fast recent growth rate; no equivalent figure is available for Netflix. All price-based figures are as at the 4 September 2026 close.

Growth profile

Neither company wins on growth outright. Measured from fiscal 2022 to fiscal 2025, Meta compounded revenue at 19.9% a year and Netflix at 12.6%; over the longer run from 2020 to 2025 the figures are 18.5% and 12.6%. Meta's headline earnings figure — a 39.8% three-year EPS CAGR from the 2022 base — is flattered by that starting point, a year in which its profits were depressed; the five-year measure from 2020 of 18.4% is the steadier read and sits close to its revenue rate. No EPS growth series is available for Netflix, so the earnings comparison cannot be completed on like terms. Set against Meta's far larger base, Netflix's consistency at roughly 12.6% on both horizons is the notable feature. On the evidence available, the factor is genuinely too close to separate.

Profitability and quality

On margins the gap is clear and it favours Meta. Gross margin ran at 81.8% in the twelve months to June 2026 against 49.1% at Netflix, a reflection of content costs rather than any operational failing. Operating margin follows at 38.1% versus 29.7%, though net margins converge sharply — 29.8% and 28.2% — meaning Netflix loses far less between the operating and bottom lines. In absolute terms Meta earned $86.9bn of operating profit and $68.1bn of net income, against $14.4bn and $13.6bn at Netflix. Cash conversion tells a different story: Meta's free cash flow of $41.0bn is well below its net income, consistent with heavy capital spending, while Netflix converted $13.6bn of profit into $11.2bn of free cash. Both report an operating-income line directly.

Balance-sheet risk

The balance-sheet verdict goes to Meta, though both look comfortable as at 30 June 2026. Meta held $15.5bn of cash against $83.7bn of total debt — far more gross borrowing than Netflix's $14.3bn against $9.1bn of cash — but leverage relative to earnings is modest at 0.62 times net debt to EBITDA, versus 0.35 times at Netflix. What separates them is coverage and liquidity: Meta's interest cover of 43.6 times dwarfs Netflix's 16.9 times, and its current ratio of 2.23 compares with 1.14, meaning Netflix holds only marginally more in current assets than current liabilities. Netflix's absolute debt load is the smaller and its leverage ratio the lower; Meta's far larger earnings base makes the debt it does carry comfortably serviceable. On the combined measures, Meta has the wider margin for error.

Price performance and shareholder returns

Here the direction reverses. Netflix generated a 49.5% return on equity in the twelve months to June 2026 against Meta's 29.9%, and a 33.6% return on invested capital versus 20.5%. The ROE figure needs context: Netflix's shareholders' equity stood at just $30.2bn as at 30 June 2026 — against $261.2bn at Meta — and the company returned capital at a 3.04% buyback yield, which shrinks the equity denominator and lifts the ratio. ROIC is the fairer comparator on that account, and Netflix still leads by a wide margin, indicating it earns more per dollar of capital deployed even after content investment. Meta's 20.5% ROIC is strong in absolute terms and achieved on a far larger capital base, which is the harder task. On returns specifically, Netflix is the stronger performer.

Which stock fits which investor

Income seekers have the clearer choice: the income factor goes to Netflix, which pays no dividend at all but retired stock at a 3.04% buyback yield, comfortably ahead of Meta's 0.34% dividend yield plus 0.21% of buybacks. Investors prioritising growth are pointed to Meta, whose 19.9% three-year revenue CAGR outpaces Netflix's 12.6%, and whose payout ratio of 7.88% leaves most earnings retained. On quality, Meta again takes it on margins and balance-sheet strength, despite trailing on return ratios. Value is a tie — 23.2 versus 24.6 times earnings leaves nothing meaningful to choose. Investors wanting scale and a fortress balance sheet lean Meta; those comfortable with a smaller, more capital-efficient business returning cash through repurchases lean Netflix. Neither profile is obviously superior; they answer different questions.

• Value: Too close to call
• Growth: META
• Income: NFLX
• Quality: META

Frequently asked questions

How much larger is Meta than Netflix?

Substantially. Meta's market capitalisation was about $1,582.6bn at the 4 September 2026 close, against roughly $325.8bn for Netflix. On revenue for the twelve months to June 2026, Meta booked $228.2bn versus $48.4bn — close to five times the scale — and net income of $68.1bn against $13.6bn.

Which stock is cheaper on earnings?

They are effectively level. Meta traded at 23.2 times trailing earnings and Netflix at 24.6 times, both as at the 4 September 2026 close, using earnings for the twelve months to June 2026. Price-to-sales is similarly matched at 6.93 and 6.74, which is why we score valuation as a tie.

Why does Netflix show a much higher return on equity?

Netflix posted a 49.5% ROE against Meta's 29.9%, but its shareholders' equity was only $30.2bn as at 30 June 2026 compared with $261.2bn at Meta, and a 3.04% buyback yield shrinks that base further. Return on invested capital is the cleaner read — Netflix still leads at 33.6% versus 20.5%.

Does either company pay a dividend?

Only Meta. It paid $2.10 per share over the twelve months to June 2026, a 0.34% yield on the 4 September 2026 price, with a payout ratio of 7.88%. Netflix pays nothing and instead returns cash via repurchases, at a 3.04% buyback yield versus Meta's 0.21%.

Which has the stronger balance sheet?

Meta, on our scoring. It held $15.5bn of cash against $83.7bn of debt as at 30 June 2026, but covers interest 43.6 times and has a current ratio of 2.23. Netflix carries less debt at $14.3bn and lower leverage of 0.35 times net debt to EBITDA, but covers interest 16.9 times with a current ratio of 1.14.

Related comparisons

• META vs GOOGL
• MSFT vs META
• NFLX vs DIS