Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, movie rental service Netflix (Nasdaq: NFLX) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Netflix's business and see what CAPS investors are saying about the stock right now.

Netflix facts

Headquarters (founded) Los Gatos, Calif. (1997)
Market Cap $3.6 billion
Industry Internet retail
Trailing-12-Month Revenue $3.4 billion
Management Founder/Chairman/CEO Reed Hastings
CFO David Wells
Return on Equity (average, past 3 years) 58.3%
Cash/Debt $804.5 million / $400.0 million

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 19% of the 9,528 members who have rated Netflix believe the stock will underperform the S&P 500 going forward.

A few months ago, one of those Fools, Becker2011, touched on the competitive headwinds working against Netflix:

In this game it is all about content, which boils down to who has more cash to buy it. Amazon ... signed a deal with Viacom adding Comedy Central and MTV to what they have to offer. As Amazon slowly enters this space [Netflix] is going to have more and more problems competing and retaining customers. Also, not to mention Coinstar's [Redbox] can't be helping either.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.