Netflix surged, Disney lagged—investors weigh the buy

Netflix vs – Netflix’s streaming dominance has pushed its stock up more than 60% over five years, while Walt Disney is down over 40%. With Netflix’s pricing power and strong margins contrasted against Disney’s lower valuation, park-driven earnings, and new CEO leadership,

For investors staring at two household names—Netflix and Walt Disney—the choice doesn’t feel academic. It feels like watching two very different eras of media unfold at once.

Netflix has built its business entirely on streaming, and the market has rewarded that focus. Over the past five years, Netflix’s stock has surged more than 60%. Disney’s story has gone the other direction. Over the same period, Disney’s stock is down over 40%. Now the question turning up in brokerage conversations is blunt: which trend continues—and which one has already run too far?.

Netflix’s case starts with dominance that’s harder to ignore than hype. The company has generated strong growth and, just as important, strong profits. Its gross profit margin is close to 50%. a notable figure given Netflix’s aggressive push to grow content while also venturing into gaming and live sports.

Netflix has also been able to raise prices multiple times in recent years without losing the consumer appetite it needs. The stock has taken its own hit this year, down 13%, which is exactly where some investors see opportunity: a pullback after a long run.

On the numbers, Netflix’s momentum is clear. In 2025, Netflix’s revenue totaled $45 billion, representing an increase of 43% over just three years. Valuation is part of the argument. too: Netflix trades at a price-to-earnings multiple of 26. which is stated as being in line with the S&P 500 average. The pitch is that investors aren’t paying an outlandish premium for a business that keeps proving it can grow and monetize.

Disney’s supporters start from a different kind of confidence: undervaluation hiding in plain sight. Disney’s portfolio includes “iconic brands and intellectual property,” and the belief is that those assets can keep powering both its streaming platform and its parks.

Here, the contrast is sharp. Disney’s revenue is described as up just 6% over its past two quarters, which isn’t exactly the kind of acceleration investors crave. But the argument shifts from growth rate to where the earnings actually come from.

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, Disney is framed as well-positioned for its next phase. D’Amaro took over from Bob Iger earlier this year.

The Disney Experiences segment—covering its parks—is said to generate more than half of the company’s operating income. Expanding those parks is presented as a major growth opportunity for the company.

The market-size comparison is part of the persuasive force. Disney’s market cap is stated as $177 billion, roughly half of Netflix’s $344 billion. Even without Disney being in a dramatic turnaround, the case is that there’s room to unlock value as the company moves into the next chapter.

That’s reinforced by valuation: at 16 times earnings, Disney’s stock is described as looking considerably undervalued. In this view. the transition risk that always comes with a new CEO is real—but potentially outweighed by the longer runway Disney has through its brands. streaming presence. and parks.

There’s also a direct attempt to simplify what investors are really debating. Both stocks are framed as options for long-term growth investors, but with Disney’s lower valuation and broader business model, the stronger case for buying—at least in this argument—leans toward Disney.

The pitch is that if Disney can improve its growth rate, investors may be willing to pay a higher premium later. From that perspective, the uncertainty isn’t a deal-breaker; it’s the price of getting in early.

Before any purchase, though, there’s one more caveat included in the original pitch itself. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now, and Walt Disney wasn’t one of them.

The promo then points to how Stock Advisor’s recommendations have performed in the past. It says Netflix made the list on December 17. 2004—claiming that a $1. 000 investment at the time of recommendation would have grown to $440. 440. with results as of June 16. 2026. It also says Nvidia made the list on April 15. 2005—claiming that $1. 000 would have become $1. 303. 950. with the same stated “as of June 16. 2026” timeframe.

David Jagielski, CPA is listed as having positions in Walt Disney. The Motley Fool is listed as having positions in and recommending Netflix and Walt Disney, along with a disclosure policy. The piece closes by noting that “Netflix vs Disney: What’s the Better Stock to Buy Right Now?” was originally published by The Motley Fool.

Netflix Walt Disney NFLX DIS streaming industry stock buy valuation price to earnings Disney parks Josh D’Amaro