NFLX vs TSLA: Which Is the Better Buy?

Side-by-side comparison of Netflix, Inc. and Tesla, Inc. โ€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-05-04.
Netflix, Inc. ยท Communication Services
$91.02
+95.7% upside to fair value
Grade B High Quality
VS
Tesla, Inc. ยท Consumer Cyclical
$387.51
-47.6% upside to fair value
Grade D
QuantHub Verdict
NFLX has more upside to fair value (+95.7%). NFLX trades at a lower forward P/E (28.7x). These are model outputs โ€” not personalized investment advice. See all research โ†’
Valuation & Fundamentals
Metric NFLX TSLA
Current Price $91.02 $387.51
Fair Value Estimate $178.10 $203.09
Upside to Fair Value +95.7% -47.6%
Market Cap $383.3B $1,454.1B
Forward P/E 28.7x 330.0x
EV / EBITDA 11.4x 122.9x
Price / Sales 8.2x 15.3x
Price / FCF 32.2x 233.8x
Revenue Growth YoY +16.2% -3.1%
Gross Margin 49.0% 18.0%
Operating Margin 29.7% 4.6%
Return on Equity 49.2% 4.8%
Dividend Yield 0% 0%
FCF Yield 3.1% 0.43%
Analyst Consensus Strong Buy Hold
Investment Thesis
NFLX โ€” Netflix, Inc.
Netflix, Inc. operates a leading global streaming entertainment service with a dominant streaming segment accounting for nearly 100% of its revenue. The company benefits from a high-quality business model characterized by strong revenue growth of 16.2% and earnings growth of 82.8% in the most recent quarter, a robust 49.2% return on equity, and healthy margins with a 29.7% operating margin and 28โ€ฆ
TSLA โ€” Tesla, Inc.
Tesla, Inc. is a leading global manufacturer of electric vehicles, energy storage, and solar products, led by CEO Elon Musk since 2008. The company has a mixed business quality profile with a strong brand and innovation leadership but faces significant challenges including declining automotive revenue, which fell nearly 10% year-over-year in 2025, and a 3.1% revenue decline in the most recent quaโ€ฆ
Accumulation Zones
Metric NFLX TSLA
Zone Low $133.57 $152.32
Zone High $151.38 $172.63
In Buy Zone? Yes No
โ† NFLX Research    TSLA Research โ†’    All Research