MSFT vs NFLX: Which Is the Better Buy?
Side-by-side comparison of Microsoft Corporation and Netflix, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-17.
Microsoft Corporation · Technology
$497.12
+41.3% upside to fair value
High Conviction
Grade A
High Quality
VS
Netflix, Inc. · Communication Services
$76.41
+44.0% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
NFLX has more upside to fair value
(+44.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MSFT |
NFLX |
| Current Price |
$497.12 |
$76.41 |
| Fair Value Estimate |
$702.35 |
$110.00 |
| Upside to Fair Value |
+41.3%
|
+44.0%
|
| Market Cap |
$3,691.4B |
$318.2B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
18.3x
|
10.6x
|
| Price / Sales |
11.1x
|
6.6x
|
| Price / FCF |
55.1x
|
29.1x
|
| Revenue Growth YoY |
+17.7%
|
+13.4%
|
| Gross Margin |
67.9%
|
49.1%
|
| Operating Margin |
46.8%
|
29.7%
|
| Return on Equity |
33.2%
|
48.0%
|
| Dividend Yield |
0.73% |
0% |
| FCF Yield |
1.81%
|
3.44%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Microsoft is a global infrastructure-software platform spanning Azure, Microsoft 365, security, Dynamics, Windows, GitHub and AI copilots, with high business quality supported by enterprise distribution, explicitly cited switching costs, a $678 billion commercial RPO balance, 67.9% TTM gross margin, 46.8% TTM operating margin, 40.3% TTM net margin and 33.2% ROE. Revenue grew 17.7% and earnings gr…
Netflix is a global subscription and advertising-supported entertainment platform with a high-quality brand, content engine, recommendation technology and distribution scale, evidenced by more than 97 billion viewing hours in the first half of 2026 and an audience approaching one billion people. Fundamentals remain strong: revenue grew 13.4% year over year in the most recent quarter, TTM gross, o…
Accumulation Zones
| Metric |
MSFT |
NFLX |
| Zone Low |
$526.76 |
$82.50 |
| Zone High |
$597.00 |
$93.50 |
| In Buy Zone? |
Yes
|
Yes
|