WallStSmart

Walt Disney Company (DIS)vsNetflix Inc (NFLX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Walt Disney Company generates 104% more annual revenue ($98.86B vs $48.37B). NFLX leads profitability with a 28.2% profit margin vs 8.7%. NFLX appears more attractively valued with a PEG of 1.41. NFLX earns a higher WallStSmart Score of 73/100 (B).

DIS

Buy

55

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 4.7Quality: 6.0
Piotroski: 6/9Altman Z: 1.91

NFLX

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 10.0Value: 4.7Quality: 7.5
Piotroski: 6/9Altman Z: 3.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DISUndervalued (+6.6%)

Margin of Safety

+6.6%

Fair Value

$113.57

Current Price

$106.99

$6.58 discount

UndervaluedFair: $113.57Overvalued
NFLXSignificantly Overvalued (-36.8%)

Margin of Safety

-36.8%

Fair Value

$56.58

Current Price

$77.90

$21.32 premium

UndervaluedFair: $56.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DIS3 strengths · Avg: 8.3/10
Market CapQuality
$183.98B9/10

Large-cap with strong market position

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.07B8/10

Generating 3.1B in free cash flow

NFLX6 strengths · Avg: 9.5/10
Market CapQuality
$322.29B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
45.3%10/10

Every $100 of equity generates 45 in profit

Operating MarginProfitability
33.4%10/10

Strong operational efficiency at 33.4%

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
28.2%9/10

Keeps 28 of every $100 in revenue as profit

Free Cash FlowQuality
$1.37B8/10

Generating 1.4B in free cash flow

Areas to Watch

DIS4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.914/10

Grey zone — moderate risk

Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

PEG RatioValuation
2.802/10

Expensive relative to growth rate

EPS GrowthGrowth
-48.3%2/10

Earnings declined 48.3%

NFLX1 concerns · Avg: 4.0/10
Price/BookValuation
10.8x4/10

Trading at 10.8x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : DIS

The strongest argument for DIS centers on Market Cap, Price/Book, Free Cash Flow.

Bull Case : NFLX

The strongest argument for NFLX centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.2% and operating margin at 33.4%. Revenue growth of 13.4% demonstrates continued momentum.

Bear Case : DIS

The primary concerns for DIS are Altman Z-Score, Return on Equity, PEG Ratio.

Bear Case : NFLX

The primary concerns for NFLX are Price/Book.

Key Dynamics to Monitor

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

NFLX carries more volatility with a beta of 1.53 — expect wider price swings.

NFLX is growing revenue faster at 13.4% — sustainability is the question.

DIS generates stronger free cash flow (3.1B), providing more financial flexibility.

Bottom Line

NFLX scores higher overall (73/100 vs 55/100), backed by strong 28.2% margins and 13.4% 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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