Question: Netflix (NFLX) vs. GEO Holdings (TOK) Compute financial ratios, time value, variables, and returns using industry standard tools for optimizing financial success. Analyze corporate financial data in evaluating past and future financial performances.
Investment
A. Are the companies considered growth or value companies? Why?
B. Which company's stock is the better investment? Consider supporting your answer with data.
| Netflix Inc. (NMS: NFLX) |
2016 |
2015 |
2014 |
| Price Earnings Ratio = Market Value Per Share/EPS |
0.98 |
0.97 |
0.97 |
| Debt Equity Ratio = Total Liability/Shareholder Equity |
4.07 |
3.59 |
2.8 |
| Free Cash Flow |
1467576 |
1809330 |
1113608 |
| Earnings Per Share |
0.44 |
0.29 |
0.634 |
| Return on Equity = Net Income/Sharholder Equity |
0.0697 |
0.0552 |
0.1436 |
| Net Profit Margin = Net Profit/Revenue |
0.0211 |
0.0181 |
0.0485 |
| Geo Holdings Corp (TOK: 2681) |
2016 |
2015 |
2014 |
| Price Earnings Ratio = Market Value Per Share/EPS |
0.99 |
1 |
-54.4 |
| Debt Equity Ratio = Total Liability/Shareholder Equity |
1.01 |
1.03 |
0.37 |
| Free Cash Flow |
37683 |
32052 |
19869 |
| Earnings Per Share |
205.78 |
137.99 |
-70 |
| Return on Equity = Net Income/Sharholder Equity |
16.33% |
11.70% |
6.86% |
| Net Profit Margin = Net Profit/Revenue |
3.94% |
2.71% |
1.54% |