WallStSmart

Walt Disney Company (DIS)vsNetflix Inc (NFLX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Walt Disney Company generates 101% more annual revenue ($97.26B vs $48.37B). DIS leads profitability with a 11.5% profit margin vs 0.3%. NFLX appears more attractively valued with a PEG of 1.54. NFLX earns a higher WallStSmart Score of 71/100 (B).

DIS

Buy

59

out of 100

Grade: C

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

NFLX

Strong Buy

71

out of 100

Grade: B

Growth: 5.3Profit: 5.5Value: 4.0Quality: 7.5
Piotroski: 6/9Altman Z: 3.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DISUndervalued (+4.8%)

Margin of Safety

+4.8%

Fair Value

$111.46

Current Price

$96.19

$15.27 discount

UndervaluedFair: $111.46Overvalued
NFLXSignificantly Overvalued (-30.3%)

Margin of Safety

-30.3%

Fair Value

$56.49

Current Price

$71.71

$15.22 premium

UndervaluedFair: $56.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DIS4 strengths · Avg: 8.3/10
Market CapQuality
$166.48B9/10

Large-cap with strong market position

P/E RatioValuation
15.4x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$4.94B8/10

Generating 4.9B in free cash flow

NFLX4 strengths · Avg: 9.5/10
Market CapQuality
$291.85B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
45.3%10/10

Every $100 of equity generates 45 in profit

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$1.37B8/10

Generating 1.4B in free cash flow

Areas to Watch

DIS3 concerns · Avg: 3.3/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.914/10

Grey zone — moderate risk

EPS GrowthGrowth
-29.8%2/10

Earnings declined 29.8%

NFLX4 concerns · Avg: 4.0/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Price/BookValuation
9.9x4/10

Trading at 9.9x book value

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

EPS GrowthGrowth
0.1%4/10

0.1% earnings growth

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, Altman Z-Score.

Bear Case : DIS

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

Bear Case : NFLX

The primary concerns for NFLX are PEG Ratio, Price/Book, Revenue Growth. Thin 0.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

NFLX carries more volatility with a beta of 1.52 — expect wider price swings.

DIS is growing revenue faster at 6.5% — sustainability is the question.

DIS generates stronger free cash flow (4.9B), providing more financial flexibility.

Monitor ENTERTAINMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NFLX scores higher overall (71/100 vs 59/100). 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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