Netflix (NFLX +1.15%) shares have skyrocketed 25,740% in the past 20 years (as of March 12). Investors looking to score monster returns might look at this kind of performance and consider buying this streaming stock.
However, Walt Disney (DIS 0.15%), whose shares trade 51% below their peak, has a convincing argument for investment as well. Which of these stocks will make you richer going forward?
Image source: Getty Images.
Netflix dominates, but the valuation reflects this position
With its massive subscriber base of 325 million and 2025 revenue of $45 billion, Netflix is a dominant force in the streaming market. Investors who got in years ago have reaped the rewards.
Now it’s time to be critical of the valuation. Shares trade at a forward price-to-earnings (P/E) ratio of 30, which isn’t cheap, especially with the likelihood that growth will decelerate in the future.
Today’s Change
(-0.15%) $-0.15
Current Price
$99.28
Key Data Points
Market Cap
$176B
Day’s Range
$99.18 – $100.76
52wk Range
$80.10 – $124.69
Volume
449K
Avg Vol
11M
Gross Margin
31.61%
Dividend Yield
1.26%
Disney shares are cheaper, and streaming profits are soaring
From a valuation perspective, the House of Mouse wins the battle. Investors can buy Disney stock at a forward P/E multiple of 15, representing a 50% haircut to Netflix.
Disney’s entertainment streaming segment (including Disney+ and Hulu’s streaming operations) has quickly become significantly profitable. Operating income skyrocketed 828% year over year in fiscal 2025 (ended Sept. 27, 2025). The leadership team expects this figure to soar again in fiscal 2026.
Moreover, Disney has a robust experiences segment that provides diversification from a financial perspective.
Investors buying in now who choose Disney shares, instead of Netflix, are positioned to produce a better return over the next five years.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Walt Disney. The Motley Fool has a disclosure policy.