Netflix vs. Comcast: Which Media Stock Has an Edge Right Now?

Netflix NFLX and Comcast CMCSA are two prominent American media companies competing for audience share in an evolving entertainment landscape. Netflix is a pure-play streaming giant with more than 300 million paid members globally, while Comcast spans broadband, studios, theme parks and its Peacock streaming platform. Both recently reported fourth-quarter 2025 earnings and issued 2026 guidance.

Let’s delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for NFLX Stock

Netflix enters 2026 on a strong footing. Management guided for revenues of $50.7-$51.7 billion, implying 12-14% growth, fueled by membership expansion, pricing, and a projected doubling of advertising revenues to approximately $3 billion. The company targets a 31.5% operating margin — a 200-basis-point improvement — with free cash flow guidance of approximately $6 billion, underscoring compounding financial strength. Content amortization growth of roughly 10% will trail revenue expansion, reflecting disciplined investment.

Netflix’s announced 2026 content pipeline is broad and globally resonant. Upcoming originals include Peaky Blinders: The Immortal Man, One Piece Season 2, the Beef Season 2 anthology starring Oscar Isaac and Carey Mulligan, and the Denzel Washington-Robert Pattinson thriller Here Comes the Flood. The final seasons of Outer Banks and The Witcher, an animated Stranger Things revival, and Charlize Theron’s Apex round out the marquee lineup. A new Universal Pictures licensing deal will also bring theatrical films to Netflix shortly after their box office runs, further strengthening the library.

Advertising is accelerating rapidly, with ad revenues up 2.5x in 2025 and AI-powered tools enabling custom brand campaigns. Gaming, anchored by titles like Red Dead Redemption, continues to mature alongside cloud TV gaming. India’s emergence as a top-two growth market illustrates Netflix’s expansive global runway. Near-term risks include M&A integration costs flagging a 0.5-point margin headwind and intensifying competition from Disney+ and Amazon Prime Video, though Netflix’s 96 billion viewing hours in the second half of 2025 signal engagement depth that rivals struggle to match.

The Zacks Consensus Estimate for NFLX’s 2026 earnings is pegged at $3.12 per share, indicating a 23.32% increase from the previous year.

Netflix, Inc. Price and Consensus

Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote

The Case for CMCSA Stock

Comcast’s fourth-quarter 2025 results underscored the strain of managing a legacy media empire in transition. While Peacock’s paid subscribers expanded 22% to 44 million, consolidated revenues grew just 1%, adjusted EBITDA declined 10%, and earnings per share dropped 12%, weighed down by heavy NBA rights costs. The core connectivity business continues losing ground to fixed wireless and fiber competitors, with management acknowledging ARPU pressure will persist into 2026.

Comcast’s 2026 priorities center on a sweeping broadband pricing overhaul — described as the largest broadband investment year in its history — alongside deeper wireless convergence as free lines convert to paid subscribers in the second half. Peacock remains a significant burden, with fourth-quarter losses widening to $552 million. Management anticipates meaningful EBITDA improvement at Peacock in 2026, but the platform is still unprofitable, and its path to breakeven carries considerable execution risk even with recent price hikes in place.

Peacock’s announced 2026 originals are narrow. Upcoming scripted titles include The Paper — an Office spinoff — an animated Ted series from Seth MacFarlane, and the final season of Bel-Air. On the film side, Peacock will stream NBCUniversal’s 2026 studio slate after theatrical windows: Christopher Nolan’s The Odyssey, Super Mario Galaxy, Minions 3, and Steven Spielberg’s Disclosure Day. A Taylor Sheridan creative partnership adds long-term IP. However, Peacock’s scripted lineup lacks the franchise scale of Netflix’s slate, leaving it heavily dependent on live sports to drive growth.

The consensus mark for 2026 earnings is pegged at $3.68 per share, indicating a decline of 14.62% year over year.

Comcast Corporation Price and Consensus

Comcast Corporation price-consensus-chart | Comcast Corporation Quote

Valuation and Price Performance Comparison

Shares of Netflix have plunged 35.8% over the past six months, underperforming the Zacks Consumer Discretionary sector and Comcast’s decline of 10.5% and 6.8%, respectively.

NFLX Underperforms CMCSA in 6 Months

Netflix trades at 6.33x forward P/S versus Comcast’s 0.93x. This premium is justified by NFLX’s superior growth trajectory and expanding margins.

NFLX vs. CMCSA: P/S F12M Value

Conclusion

Netflix holds a clear edge over Comcast heading into 2026. With 12-14% revenue growth guidance, a 31.5% operating margin target, doubling advertising revenues, and a globally resonant content pipeline spanning originals, franchises, gaming, and live events, Netflix presents a structurally superior investment case. Comcast, by contrast, battles broadband subscriber erosion, widening Peacock losses, and EBITDA compression that may take multiple quarters to resolve. Despite Netflix’s 6.33x P/S premium versus Comcast’s discounted 0.93x multiple, Netflix’s superior growth fundamentals more than justify the gap. Investors should watch Netflix for an attractive entry point and stay away from Comcast stock right now. NFLX currently carries a Zacks Rank #3 (Hold), whereas CMCSA has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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