Netflix (NASDAQ: NFLX) and Walt Disney (NYSE: DIS) are two popular and successful media companies and rivals in the hotly competitive streaming industry. While Netflix has built its business entirely on streaming, Disney has much broader operations, yet its valuation is far lower than Netflix’s. It’s a testament to just how strong and dominant Netflix’s streaming business has become over the years.
In the past five years, Netflix’s stock has surged more than 60%, while Disney’s stock is down over 40%. Will that trend continue, or could Disney be the better buy from here on out? Let’s take a closer look at both of these companies.
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The case for Netflix
Netflix has shown that it knows how to dominate the streaming business. Not only has it generated strong growth over the years, but its profits have been strong as well. Its gross profit margin is close to 50%,which is impressive given the company’s aggressive efforts to not only grow its content but also venture into gaming and live sports.
The company has also done exceedingly well despite raising prices multiple times in recent years. Consumers see tremendous value in its offerings, as evidenced by the company’s continued growth. In 2025, Netflix’s revenue totaled $45 billion, which represents an increase of 43% in a span of just three years.
The stock is down 13% this year, which gives investors a compelling reason to buy it on the dip. Currently, Netflix’s stock trades at a reasonable price-to-earnings multiple of 26, which is in line with the S&P 500 average. With some excellent fundamentals and growth prospects, that’s some solid value for a terrific blue chip stock such as Netflix.
The case for Disney
Disney has some excellent intellectual property in its portfolio that could make it an undervalued investment to hold for the long haul. While its growth may not be terribly exciting of late (Disney’s revenue was up just 6% over its past two quarters), the company has incredibly valuable assets that can generate significant growth for years to come.
Under new CEO Josh D’Amaro, who has been with the company for decades and most recently served as chairman of the Disney Experiences segment, which includes its parks, the company may be in good hands to navigate the next phase of its growth. The Experiences segment generates more than half of the company’s operating income, and expanding its parks is a huge growth opportunity for Disney. D’Amaro took over from Bob Iger earlier this year.