Tired of the Netflix Roller Coaster? A Look at On-Demand Adult Entertainment Stocks: NOOF, PRVT, NFLX

Given all of the problems that Netflix (NASDAQ: NFLX) has had recently, it might be time for investors to take a serious look at two similar stocks, New Frontier Media (NASDAQ: NOOF) and Private Media Group (NASDAQ: PRVT), which provide on-demand adult entertainment. After all, on-demand adult entertainment and related market segments are a multi-billion dollar global industry. Hence, here is a closer look at NFLX’s key stats along with those of NOOF of PRVT:

Netflix (NASDAQ: NFLX)

Netflix is an Internet subscription service offering streaming television shows and movies. On Friday, Netflix rose 4.06% to $84.14 (NFLX has a 52 week trading range of $74.25 to $304.79 a share) NFLX has a market cap of $4.42 billion. Investors should note that Netflix has sunk more than 50% over the past 52 weeks and has a beta of 0.73. Netflix also has a P/E of 19.10, EPS of $4.40, a book value of $7.40, quarterly revenue growth (yoy) of 48.60% and quarterly earnings growth (yoy) of 64.50%. Netflix pays no dividend.

New Frontier Media (NASDAQ: NOOF)

New Frontier Media is involved in transactional television and the distribution of general motion picture entertainment content plus it has a direct-to-consumer division involved in the distribution of adult content to websites. On Friday, New Frontier Media fell 1.75% to $0.02 (NOOF has a 52 week trading range of $1.02 to $2.18 a share) for a market cap of $21.51 million. Investors should note that New Frontier Media has fallen around 35% over the past 52 weeks, has a beta of 1.17, EPS of negative $0.07, a book value of $2.70 and quarterly revenue growth (yoy) of negative 16.30%. New Frontier Media pays no dividend. For 2Q2011, New Frontier Media reported revenue of approximately $10.4 million verses $12.5 million for the same period last year mostly due to a Film Production segment revenue decline of $1.5 million from $3.3 million. Loss from continuing operations attributable was $0.1 million verses income from continuing operations of $0.6 million for the same quarter last year. However, New Frontier Media’s CEO also noted a strong balance sheet and cash position that will provide the company with a solid base for accomplishing its objectives.

Private Media Group (NASDAQ: PRVT)

Private Media Group is a provider of adult entertainment media content for a wide range of media platforms. Specifically, Private Media Group is a leader in adult entertainment with a global content distribution network that utilizes the Internet, broadcasting (via cable), satellite, digital TV and IPTV on 194 platforms in 42 countries; mobile content delivery via 114 network operators in 37 countries; and retail sale of DVDs and magazines. On Friday, Private Media Group closed at $0.50 (PRVT has a 52 week trading range of $0.39 to $1.70 a share) for a market cap of $10.90 million. Investors should note that Private Media Group has fallen nearly 70% over the past 52 weeks, has a beta of 0.11, EPS of negative $0.40, a book value of $1.51 and quarterly revenue growth (yoy) of negative 22.10% and quarterly earnings growth (yoy). Private Media Group pays no dividend. Investors should also note that during 2010, Private Media Group cut its workforce by 34% from 168 to 112 employees. Private Media Group’s CFO has pointed out that the company is starting to benefit from the restructuring they undertook and will continue to reduce costs while increasing sales. However, Private Media Group also appears to be in receivership according to recent filings.

The Bottom Line. Like dot.com stocks a decade ago, Netflix is finally falling back down to a more reasonable pricing level but New Frontier Media could be a stock worth watching while Private Media Group is probably best avoided right now.