Netflix Stands Out as Better Buy Over Walt Disney in Streaming Wars

Walt Disney and Netflix are two of the biggest players in the entertainment industry, but which one is a better buy for investors? The Motley Fool recently compared these two media giants to help make that decision.

Disney is a diversified company with a massive physical presence in theme parks, while Netflix is a pure-play streaming service. Disney's revenue reached nearly $94 billion in fiscal 2025, representing approximately 3% growth over the prior year. The company reported net income of roughly $12 billion, which was a significant increase from the $5 billion earned in fiscal 2024.

Disney carries a moderate amount of leverage relative to its ownership stake, with a debt-to-equity ratio of approximately 0.3x as of its September 2025 balance sheet. The current ratio is nearly 0.7x, indicating that Disney's ability to pay its short-term debts with current assets is sufficient.

Netflix, on the other hand, operates as a pure-play streaming service with over 300 million paid memberships in more than 190 countries as of early 2026. The company delivers content directly to consumers and integrates its service into set-top boxes through partnerships with telecommunications operators. For 2025, revenue reached $45 billion, which marked an increase of nearly 16% year-over-year.

Netflix's debt-to-equity ratio is roughly 0.5x based on its December 2025 balance sheet, indicating that for every dollar of equity, the company has fifty cents in total debt. The current ratio is approximately 1.2x, suggesting that Netflix's current assets are sufficient to cover short-term liabilities.

When it comes to valuation, Netflix currently carries a higher price tag relative to its P/S ratio and Forward P/E based on future earnings estimates compared to Disney. However, this reflects a higher rate of growth and streaming profitability compared to Disney. For example, Disney+ is still operating at a single-digit operating margin, while Netflix reported a stellar 33% margin in the second quarter.