Walt Disney vs Netflix

Walt Disney and Netflix are two powerhouse companies in the entertainment industry, each with their own unique strengths and strategies. Disney, known for its beloved characters, theme parks, and iconic movies, has recently made a significant impact in the streaming world with the launch of Disney+. On the other hand, Netflix revolutionized the way we consume content with its vast library of original shows and movies. Both companies have loyal fan bases and are constantly evolving to stay at the top of the industry. In this comparison, we will analyze the performance and potential of Walt Disney and Netflix stocks to determine which may be a better investment opportunity.

Walt Disney or Netflix?

When comparing Walt Disney and Netflix, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Walt Disney and Netflix.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Walt Disney has a dividend yield of 0.8%, while Netflix has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Walt Disney reports a 5-year dividend growth of 0.00% year and a payout ratio of 11.49%. On the other hand, Netflix reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Walt Disney P/E ratio at 35.92 and Netflix's P/E ratio at 42.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Walt Disney P/B ratio is 1.71 while Netflix's P/B ratio is 13.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Walt Disney has seen a 5-year revenue growth of 0.23%, while Netflix's is 1.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walt Disney's ROE at 4.78% and Netflix's ROE at 32.93%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $93.68 for Walt Disney and $699.78 for Netflix. Over the past year, Walt Disney's prices ranged from $79.23 to $123.74, with a yearly change of 56.18%. Netflix's prices fluctuated between $344.73 and $736.00, with a yearly change of 113.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.