Netflix vs. Walt Disney: Which Stock Will Make You Richer?

<p>Netflix (NASDAQ: NFLX) 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 <a href="https://www.fool.com/investing/stock-market/market-sectors/communication/media-stocks/streaming-service-stocks/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ac506e66-e13e-4b99-8397-0a10af2f28eb">streaming stock</a>.</p>
<p>However, Walt Disney (NYSE: DIS), 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?</p>
<p>Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. <a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=4f8cd1ff-d7ed-4f3f-bd61-b0827038b9a2&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fa-sa-ai-boom-nvidias%3Faid%3D10891%26source%3Disaediica0000069%26ftm_cam%3Dsa-ai-boom%26ftm_veh%3Dtop_incontent_pitch_feed_yahoo%26ftm_pit%3D18914&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ac506e66-e13e-4b99-8397-0a10af2f28eb">Continue »</a></p>
<h2>Netflix dominates, but the valuation reflects this position</h2>
<p>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.</p>
<p>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.</p>
<h2>Disney shares are cheaper, and streaming profits are soaring</h2>
<p>From a valuation perspective, the House of Mouse wins the battle. Investors can <a href="https://www.fool.com/investing/how-to-invest/stocks/how-to-invest-in-disney-stock/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ac506e66-e13e-4b99-8397-0a10af2f28eb">buy Disney stock</a> at a forward P/E multiple of 15, representing a 50% haircut to Netflix.</p>
<p>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.</p>
<p>Moreover, Disney has a robust experiences segment that provides diversification from a financial perspective.</p>
<p>Investors buying in now who choose Disney shares, instead of Netflix, are positioned to produce a better return over the next five years.</p>
<h2>Should you buy stock in Walt Disney right now?</h2>
<p>Before you buy stock in Walt Disney, consider this:</p>
<p>The Motley Fool Stock Advisor analyst team just identified what they believe are the <a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=aef7bde3-3659-49be-89d1-f89a655b8738&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-dyn-headline%3Faid%3D8867%26source%3Disaeditxt0001181%26company%3DWalt%2520Disney%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D18781&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ac506e66-e13e-4b99-8397-0a10af2f28eb">10 best stocks</a> for investors to buy now… and Walt Disney wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.</p>
<p>Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*</p>
<p>Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.</p>