InvestBattle | Nike vs Ralph Lauren

December 1, 2023by Anton Tryhubchenko

As we noted in the last week’s issue, over the past three months, one of the top growth industries in the S&P 500 has been Entertainment (+11.5%).

The largest companies in the industry (by market capitalisation): Netflix ($202.1B), the world’s leading streaming service, and Disney ($168.3B), the world’s largest media conglomerate.

Based on the latest quarterly reporting data, we analyzed each company’s profitability, strength and efficiency criteria using the methodology of Stanford University professor Joseph Piotroski.

As you can see, from the point of view of fundamental data, both companies are currently showing quite strong results. Both Netflix and Disney look attractive for medium- and long-term investments.

Also, over the past 3 months, Netflix stock has risen by +15.1% and Disney by +9.5% (the S&P 500 index has risen by +3.2%). That’s why we see that Netflix’s share price has not only outperformed its closest competitor but also demonstrated better results compared to the index.

So, there is no single winner in today’s battle. Therefore, it is up to each individual to decide which criteria to give preference to when making an investment decision, taking into account their goals and individual risk tolerance.
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