Comparison: Disney vs. Netflix – Which Streaming Service is Leading?

In the world of streaming entertainment, two heavyweights are battling it out for the top spot: Disney and Netflix. Both companies have had some major wins in 2025, with Disney’s diverse empire and Netflix’s massive subscriber base. But which one is the better investment right now? Let’s break it down.

Disney has been on a hot streak lately, with strong leadership and impressive financial results. In the third quarter of the fiscal year, Disney raked in $23.65 billion in revenue and $1.61 in adjusted earnings per share, surpassing expectations. Disney+ keeps growing, now boasting 128 million subscribers worldwide. But Disney isn’t just about streaming—their theme parks and traditional media are also thriving. With new ventures like the Abu Dhabi theme park and ESPN’s innovative sports streaming strategy, Disney is showing no signs of slowing down. Their focus on premium content, like upcoming releases Toy Story 5 and Marvel’s Daredevil: Born Again, keeps subscribers coming back for more.

On the other side, Netflix remains the king of streaming, with a whopping 300 million global subscribers. Their second-quarter revenue hit $11.08 billion, showing solid growth. But some investors are worried about Netflix’s ability to maintain profitability, especially with rising content costs. Their decision to stop reporting subscriber numbers quarterly has also raised some eyebrows. While Netflix has a strong lineup of shows and movies in the works, like the highly anticipated Stranger Things Season 5 finale and Greta Gerwig’s Narnia adaptation, they face challenges in revenue diversification and merchandising opportunities that Disney excels in.

When it comes to valuation and performance, Disney seems to have the edge. With a P/E ratio of 17.56x, Disney is trading at a discount compared to Netflix’s 40.25x ratio. This suggests that the market might be underestimating Disney’s potential while overestimating Netflix’s growth trajectory. Both stocks have seen positive returns in 2025, but Disney’s steady growth and diverse revenue streams make it a compelling choice for investors.

In the end, the choice between Disney and Netflix comes down to your investment strategy. Disney offers stability, growth potential, and a diverse portfolio of entertainment options, while Netflix remains a dominant force in the streaming world. Whichever path you choose, both Disney and Netflix are sure to keep entertaining viewers for years to come.