Quick verdict: DIS vs NFLX in 2026

Netflix (NFLX) shows a clear edge in revenue growth and profitability margins, positioning it as a leader for investors prioritizing dynamic expansion. In contrast, The Walt Disney Company (DIS) presents a more attractive value proposition with significantly lower P/E and P/B ratios, alongside a superior analyst-backed price target upside. While analysts have a slightly higher ‘Buy’ percentage for Netflix, Disney offers an income component with its dividend yield. Not investment advice.

DIS vs NFLX: key metrics side by side

Full side-by-side comparison of DIS and NFLX across valuation, profitability, growth and analyst sentiment. Data updated 2026-03-27.

DIS vs NFLX valuation comparison

DIS vs NFLX valuation presents a stark contrast for investors focused on different strategies. The Walt Disney Company (DIS) trades at a P/E ratio of 16.5x, significantly lower than Netflix’s (NFLX) 36.11x, indicating that Disney is valued more modestly relative to its earnings. This trend continues with the Price-to-Book (P/B) ratio, where DIS stands at 1.86x compared to NFLX’s much higher 14.9x. These metrics suggest that Disney offers a more attractive entry point for value investors seeking established assets at a reasonable price, aligning with traditional valuation principles.

However, when considering future potential through a discounted cash flow (DCF) analysis, Netflix shows a higher implied upside of +18.4% compared to Disney’s +7.6%. This indicates that while Netflix currently trades at a premium, its future free cash flow generation potential, as modeled by analysts, could justify a larger percentage increase from its current share price. For growth investors willing to pay a higher multiple for future earnings expansion, Netflix’s DCF upside might appear more compelling despite its higher present valuation. Overall, DIS appears cheaper on traditional valuation multiples, whereas NFLX is priced for stronger future growth, reflecting expectations for its continued dominance in digital streaming.

DIS vs NFLX growth comparison

When we compare DIS vs NFLX revenue growth, Netflix (NFLX) emerges as the clear leader with a robust year-over-year revenue growth of 15.9%. This performance underscores Netflix’s continued momentum in the highly competitive streaming entertainment landscape, demonstrating its ability to attract and retain subscribers globally. This strong top-line expansion suggests that Netflix is effectively executing its strategy, whether through new content, advertising tiers, or password-sharing crackdowns, to drive its business forward and maintain its subscriber growth trajectory in the digital realm.

In contrast, The Walt Disney Company (DIS) reported a more modest revenue growth of 3.4%. While Disney operates a much larger and more diversified entertainment conglomerate encompassing theme parks, linear television, and theatrical releases in addition to streaming, its overall growth rate reflects the challenges of scaling such a vast enterprise. Disney’s growth figures suggest a more mature company with varied business segments, some experiencing revitalization while others face headwinds. For investors prioritizing dynamic expansion and strong forward momentum in the digital entertainment space, Netflix’s growth trajectory presents a more aggressive profile, highlighting its focused strategy on streaming dominance.

DIS vs NFLX profitability

In the realm of DIS vs NFLX profitability, Netflix demonstrates significantly stronger operational efficiency and higher margins. Netflix boasts an impressive net margin of 24.3%, nearly double Disney’s 13.14%. This disparity highlights Netflix’s streamlined, digital-first business model, which allows it to convert a larger portion of its revenue into profit. Furthermore, Netflix’s EBITDA margin is exceptionally high at 66.96%, dwarfing Disney’s 20.27%. This indicates that Netflix generates substantially more earnings before interest, taxes, depreciation, and amortization relative to its revenue, reflecting strong control over its core operating costs, particularly in content creation and distribution within its streaming ecosystem.

Conversely, Disney, with its complex array of businesses including theme parks, cruise lines, studios, and linear networks, inherently carries a different cost structure that impacts its overall profitability margins. While its net margin of 13.14% is respectable for a company of its scale, it cannot match the efficiency of a pure-play streaming giant like Netflix. Regarding Free Cash Flow (FCF) yield, DIS leads with 4.2% compared to NFLX’s 2.39%. This element of the disney vs netflix free cash flow analysis suggests that while Netflix is more efficient at generating profit from revenue, Disney is currently translating a larger proportion of its market capitalization into free cash flow, which is a key indicator of a company’s ability to generate cash for debt repayment, dividends, or share buybacks. The ROE for both companies is N/A%, so this particular profitability metric cannot be directly compared from the provided data.

Analyst ratings: DIS vs NFLX

When examining analyst ratings for DIS vs NFLX, both companies receive a consensus “Buy” rating, reflecting general optimism from the financial community regarding their prospects within the entertainment sector. However, there are nuances in their recommendations. Netflix garners a slightly higher percentage of “Buy” ratings, with 64.3% of 98 analysts recommending it, compared to Disney’s 60.3% from 63 analysts. This suggests a slightly stronger conviction in Netflix’s near-term prospects from a broader pool of analysts, potentially due to its more focused and rapidly growing streaming business model.

Despite Netflix’s marginal lead in “Buy” percentage, Disney presents a significantly higher price target upside. Analysts forecast a consensus target of $139.33 for DIS, representing an impressive +47.1% upside from its current price of $94.75. For NFLX, the consensus target stands at $117.25, indicating a respectable +25.6% upside from its current price of $93.32. This substantial difference in projected upside implies that while analysts are generally positive on both, they see considerably more potential for appreciation in Disney’s stock, possibly due to its lower current valuation and ongoing strategic transformations within its vast portfolio, indicating that the market might be underestimating its intrinsic value.

Should I buy DIS or NFLX stock in 2026?

The question of whether should I buy DIS or NFLX stock in 2026 depends heavily on an investor’s individual strategy and risk tolerance, as this disney vs netflix entertainment stock comparison reveals two distinct investment profiles. For growth-oriented investors, Netflix (NFLX) stands out as the compelling choice. Its superior revenue growth of 15.9% and impressive profitability margins, including a 24.3% net margin and 66.96% EBITDA margin, highlight its operational efficiency and expanding market presence in the pure-play streaming sector. The higher DCF upside of +18.4% also suggests that while its valuation multiples are higher (P/E 36.11x), analysts see significant future potential for earnings expansion.

Conversely, value investors seeking a more established player with substantial assets at a reasonable price might find The Walt Disney Company (DIS) more appealing. Disney trades at a much lower P/E ratio of 16.5x and a P/B ratio of 1.86x, making it considerably cheaper on traditional valuation metrics. Its strong free cash flow yield of 4.2% also indicates robust cash generation relative to its market cap, offering financial flexibility for strategic investments or shareholder returns. Furthermore, analysts project a significantly higher price target upside of +47.1% for DIS, suggesting a belief in its untapped potential and ongoing strategic shifts to unlock value across its diversified entertainment empire, making it an attractive pick for those seeking deep value.

For investors prioritizing income, the choice is clear: DIS. The Walt Disney Company offers a dividend yield of 0.88%, providing a modest but consistent return to shareholders, whereas Netflix currently offers no dividend (0%). This makes Disney the only option for those seeking an income stream from their entertainment stock investment. Both companies operate in the dynamic entertainment sector, but their financial characteristics cater to different investor appetites. Always remember, this is not investment advice, and you should conduct your own thorough due diligence before making any investment decisions.

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