WallStSmart

Walt Disney Company (DIS)vsNetflix Inc (NFLX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Walt Disney Company generates 104% more annual revenue ($95.72B vs $46.89B). NFLX leads profitability with a 28.5% profit margin vs 12.8%. NFLX appears more attractively valued with a PEG of 1.34. NFLX earns a higher WallStSmart Score of 74/100 (B).

DIS

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 6.5Value: 5.3Quality: 6.0
Piotroski: 6/9Altman Z: 1.91

NFLX

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 10.0Value: 4.0Quality: 7.0
Piotroski: 6/9Altman Z: 3.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DISUndervalued (+13.2%)

Margin of Safety

+13.2%

Fair Value

$122.12

Current Price

$103.08

$19.04 discount

UndervaluedFair: $122.12Overvalued
NFLXSignificantly Overvalued (-63.1%)

Margin of Safety

-63.1%

Fair Value

$56.43

Current Price

$92.06

$35.63 premium

UndervaluedFair: $56.43Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DIS3 strengths · Avg: 8.3/10
Market CapQuality
$183.80B9/10

Large-cap with strong market position

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

NFLX6 strengths · Avg: 9.8/10
Market CapQuality
$394.17B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
48.5%10/10

Every $100 of equity generates 49 in profit

Operating MarginProfitability
32.3%10/10

Strong operational efficiency at 32.3%

EPS GrowthGrowth
86.4%10/10

Earnings expanding 86.4% YoY

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
28.5%9/10

Keeps 29 of every $100 in revenue as profit

Areas to Watch

DIS4 concerns · Avg: 2.5/10
Altman Z-ScoreHealth
1.914/10

Grey zone — moderate risk

PEG RatioValuation
2.882/10

Expensive relative to growth rate

EPS GrowthGrowth
-4.3%2/10

Earnings declined 4.3%

Free Cash FlowQuality
$-2.28B2/10

Negative free cash flow — burning cash

NFLX2 concerns · Avg: 4.0/10
P/E RatioValuation
30.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
14.6x4/10

Trading at 14.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : DIS

The strongest argument for DIS centers on Market Cap, P/E Ratio, Price/Book.

Bull Case : NFLX

The strongest argument for NFLX centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.5% and operating margin at 32.3%. Revenue growth of 16.2% demonstrates continued momentum.

Bear Case : DIS

The primary concerns for DIS are Altman Z-Score, PEG Ratio, EPS Growth.

Bear Case : NFLX

The primary concerns for NFLX are P/E Ratio, Price/Book.

Key Dynamics to Monitor

DIS profiles as a value stock while NFLX is a growth play — different risk/reward profiles.

NFLX carries more volatility with a beta of 1.67 — expect wider price swings.

NFLX is growing revenue faster at 16.2% — sustainability is the question.

NFLX generates stronger free cash flow (5.1B), providing more financial flexibility.

Bottom Line

NFLX scores higher overall (74/100 vs 59/100), backed by strong 28.5% margins and 16.2% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Walt Disney Company

COMMUNICATION SERVICES · ENTERTAINMENT · USA

The Walt Disney Company, commonly known as Disney, is an American diversified multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California.

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Netflix Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.

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