Public Company Comparison
When comparing the public companies, I had found that overall Netflix has done better than other companies based upon the statistics have. The comparison of Netflix and Amazon showed that Netflix does better overall even though Amazon's Market Cap was larger by being 120.66B than Netflix who had 4.40B. The Market Cap is defined at the overall worth of the company based off the Number of outstanding shares x the price of the stock. Amazon has a larger Market Cap because the company has a larger area of services involved than Netflix. Furthermore, Netflix has a higher Net Income, which is the revenue - total costs showing profit. The Net income of Netflix is $4.47M larger thanAmazon which shows how they have a owning of the market than Amazon even though they are a smaller company. Another comparison would be the EPG or Earnings per share of the companies which Netflix does best having a price of .78 compared to the smaller number of .08. Lastly, Netflix also did better in the PEG or Price/Earnings to Growth ratio meaning how much the price of the stock is expected to be in the future. Netflix overall had $113.48 compared to the very low $-275 for Amazon. The expected price proves how Netflix will be an overall stable stock and to better than the completion because other companies like Amazon will slowly decrease. However, the prices change on a daily bases upon the stock fluctuation but overall Netflix owns more of the market compared to its competitors. The other companies that Netflix is compared to are private meaning no one can buy stocks from the company. However, from research, it is evident that Blockbuster LLC is overall not doing as well as Netflix because it turn private after declaring bankrupcy in 2010 and sold to DISH network. Lastly, Redbox has multiple articles of comparision but on a finacial comparison the results are unknown.
Ranking Comparison
When comparing the companies on ranking, Netflix was not the best in sales but was in the top 4. Blockbuster did better in overall sales but blockbuster is a larger company and offers the service of in store rentals. There are two other companies called Hastings Entertainment Inc. and Barnes& Noble Inc. but they do not necessarily have the same service as Netflix. For this table, Blockbuster overall had more sales but is a larger company and filed bankruptcy meaning they are not doing very in present and long term. The next graph talks about the
Market Cap, which Netflix dominates because the price per stock is higher than its competitors and the P/E or Price/Earning is 125.36 while the next company's P/E is only 7.09. When P/E is high, it makes investors optimistic and promotes others to buy as well. This proves how the Market Cap of Netflix is doing much better than other companies because of the price which each share is being sold at and the P/E is higher.
Market Cap, which Netflix dominates because the price per stock is higher than its competitors and the P/E or Price/Earning is 125.36 while the next company's P/E is only 7.09. When P/E is high, it makes investors optimistic and promotes others to buy as well. This proves how the Market Cap of Netflix is doing much better than other companies because of the price which each share is being sold at and the P/E is higher.
Private Company Comparison Only
The main reason why Netflix dominates the Music and Video Store industry is that most of their competitors have not gone public yet and still run in a private business. Some main competitors that have become popular recently areHulu Plus, Redbox, and Vudu, which have only been private considering they are recent or a smaller business. Redbox had just opened in 2003 and have the service of renting movies from kiosks rather than instant and delivery of movies or DVDs. Hulu plus and Vudu both require a membership and hava instant streaming as their main service similar to Netflix but Netflix also includes Movies while the other two are mainly used for shows. With the lack of information on the company’s financial status, it is hard to determine if Netflix is doing better than these other companies are; therefore, the decision needs to be made by other customers’ personal preferences and further expectations.