NFLX Holdings, Inc. (NFLX)vs DIS Holdings, Inc. (DIS)

Quick verdict

NFLX Holdings, Inc. (NFLX) and DIS Holdings, Inc. (DIS) appeal to different investors. On our six-factor framework, NFLX scores 4 and DIS scores 2. DIS looks cheaper on the multiples that matter, while NFLX grows faster and NFLX earns higher returns on capital. Overall, NFLX edges this comparison, but the right pick depends on whether you prioritise value, growth, income or balance-sheet safety.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

NFLX Holdings, Inc. operates in Beverages (Consumer Defensive), while DIS Holdings, Inc. sits in Credit Services (Financial Services). The two operate in different sectors, so cyclicality and end-market exposure differ — factor that into any portfolio overlap. NFLX carries a beta of 1.16 versus 1.10 for DIS, meaning NFLX has historically been the more volatile of the two.

Valuation

On valuation, DIS is the cheaper stock. NFLX trades on a forward P/E of 32.49 and EV/EBITDA of 23.64, against 23.87 and 21.93 for DIS. Price-to-sales is 7.08 vs 19.18, and free-cash-flow yield is 4.4% vs 5.6%. A higher multiple is only justified if the company can sustain faster growth or wider margins, which is exactly what the next sections test.

Growth profile

NFLX is the faster grower. NFLX has compounded revenue at 21.8% over three years with EPS growth of 30.1%, while DIS has delivered 16.6% revenue and 17.4% EPS growth. Growth like this is the single biggest driver of long-term returns, but it also tends to come with a richer valuation, so it must be weighed against the multiples above.

Profitability and quality

On profitability and quality, NFLX is stronger. NFLX posts a 26.5% operating margin, 45.4% return on equity and 8.9% return on invested capital. DIS posts 31.8%, 31.1% and 34.4% respectively. Return on invested capital above roughly 15% is a hallmark of a durable competitive advantage, so this metric deserves particular attention.

Balance-sheet risk

NFLX has the safer balance sheet. NFLX carries net-debt/EBITDA of -0.82x with a current ratio of 2.91, versus 1.76x and 2.82 for DIS. Lower leverage gives a company more room to invest through a downturn and reduces the risk of dilution or distress.

Price performance and shareholder returns

Over the past year NFLX returned 106.6% against -9.4% for DIS; on a three-year annualised basis it is 38.9% vs 24.9%. NFLX yields 1.8% and DIS yields 4.0%. Past performance never guarantees future results, but the multi-year track record shows how the market has rewarded each business so far.

Which stock fits which investor

For value-oriented investors, DIS is the better fit on today's multiples. Growth investors will likely prefer NFLX, which is expanding faster. Income investors should lean toward DIS for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour NFLX for its superior returns on capital. This is a comparison of facts, not a recommendation — your time horizon, risk tolerance and existing holdings should drive the final decision.

• Value: DIS
• Growth: NFLX
• Income: DIS
• Quality: NFLX

Frequently asked questions

Is NFLX or DIS the better buy right now?

Neither is universally "better." NFLX scores 4 and DIS scores 2 on our six-factor framework. DIS is cheaper, NFLX grows faster, and NFLX is higher quality — so the right pick depends on your objective.

Which stock is cheaper, NFLX or DIS?

DIS is the cheaper stock across forward P/E (32.49 vs 23.87), EV/EBITDA (23.64 vs 21.93) and price-to-sales (7.08 vs 19.18).

Which has grown faster, NFLX or DIS?

NFLX has the stronger growth profile, with three-year revenue CAGR of 21.8% for NFLX versus 16.6% for DIS.

Which stock pays a bigger dividend?

NFLX yields 1.8% and DIS yields 4.0%, so DIS is the stronger income choice.

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