Apple vs Netflix: Business Model & Financial Comparison 2026
Apple · Technology / Consumer Electronics·Netflix · Communication Services / Entertainment
Financial Comparison
| Metric | AAPLApple | NFLXNetflix |
|---|---|---|
| Market Cap | $3.75T | $398.57B |
| Revenue (TTM) | $435.62B | $45.18B |
| Revenue Growth | 15.7% | 17.6% |
| Gross Margin | 47.3% | 48.5% |
| Operating Margin | 35.4% | 24.5% |
| Net Margin | 27.0% | 24.3% |
| Return on Equity | 152.0% | 42.8% |
| P/E (Trailing) | 32.3x | 37.1x |
| P/E (Forward) | 27.5x | 24.5x |
| Free Cash Flow | $106.31B | $24.82B |
| Cash | $66.91B | $9.06B |
| Total Debt | $90.51B | $16.98B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Apple
Apple stands as the world's most valuable company and leader in consumer electronics. Generating $435.62 billion in annual revenue (growing 15.7% year-over-year) and carrying a market capitalization of $3.83 trillion, the company has cemented its position as a foundational player in the global Consumer Electronics landscape. Under the leadership of Tim Cook, Apple continues to execute on a multi-year strategic vision that balances growth investme…
Full Apple analysis →Netflix
Netflix stands as the global leader in subscription streaming entertainment. Generating $45.18 billion in annual revenue (growing 17.6% year-over-year) and carrying a market capitalization of $420.67 billion, the company has cemented its position as a foundational player in the global Entertainment landscape. Under the leadership of Greg Peters, Netflix continues to execute on a multi-year strategic vision that balances growth investment with sha…
Full Netflix analysis →SWOT Analysis Comparison
Strengths
Apple
- With a market capitalization of $3.83T, Apple is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller com
- Apple's gross margin of 47.3% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 35.4% demonstrates disciplined cos
- Revenue grew 15.7% year-over-year to $435.62B, indicating strong demand for Apple's products and services and outperformance relative to many industry peers.
Netflix
- With a market capitalization of $420.67B, Netflix is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller
- Netflix's gross margin of 48.5% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 24.5% demonstrates disciplined c
- Revenue grew 17.6% year-over-year to $45.18B, indicating strong demand for Netflix's products and services and outperformance relative to many industry peers.
Weaknesses
Apple
- With a debt-to-equity ratio of 102.6, Apple carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and increases vulnerabilit
- With 150,000 employees globally, Apple faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler competito
- iPhone revenue still represents 52% of total sales — over-reliance on a single product
Netflix
- Netflix's debt-to-equity ratio of 63.8 indicates meaningful financial leverage. Total debt stands at $16.98B against $9.06B in cash and equivalents.
- Debt/equity of 63.78 reflects heavy content investment financed with debt
- No live sports rights portfolio compared to Disney/Amazon
Opportunities
Apple
- The rapid advancement of generative AI and large language models presents Apple with opportunities to automate operations, enhance products, and develop new AI-native services. Companies in Technology
- Apple operates in the Consumer Electronics segment of the broader Technology sector, which represents a $5.0 trillion by 2027 (IDC Global Technology Market). Even modest share gains in this environmen
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Apple's
Netflix
- The rapid advancement of generative AI and large language models presents Netflix with opportunities to automate operations, enhance products, and develop new AI-native services. Companies in Communic
- Netflix operates in the Entertainment segment of the broader Communication Services sector, which represents a $2.5 trillion by 2027. Even modest share gains in this environment translate to meaningfu
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Netflix
Threats
Apple
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Apple's revenue is not fully insulated from macroeconomic cycles, and a recession scenario c
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Apple's business mo
- The technology sector evolves at a pace where today's competitive advantages can erode quickly. New entrants with AI-native approaches, open-source alternatives, or disruptive business models could ch
Netflix
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Netflix's revenue is not fully insulated from macroeconomic cycles, and a recession scenario
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Netflix's business
- The technology sector evolves at a pace where today's competitive advantages can erode quickly. New entrants with AI-native approaches, open-source alternatives, or disruptive business models could ch
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Open Comparison ToolApple vs Netflix: FAQ
- Is Apple bigger than Netflix?
- By market capitalization, Apple is larger at $3.75T vs Netflix's $398.57B.
- Which has better profit margins — Apple or Netflix?
- Apple has higher net profit margins (27.0%) compared to Netflix (24.3%). Gross and operating margins are compared in the table above.
- What sectors do Apple and Netflix operate in?
- Apple operates in the Technology sector (Consumer Electronics). Netflix operates in the Communication Services sector (Entertainment).
- How does Apple's revenue compare to Netflix's?
- Apple generates $435.62B in annual revenue (TTM) while Netflix generates $45.18B. Apple is the larger company by revenue as of 2026.