Disney Stock vs. Netflix: Which Streaming Giant Is the Better Buy in 2026?
Written by
Karen Doyle
Edited by
Brendan McGinley
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Streaming is the biggest thing to hit the entertainment industry in years, and it’s showing no signs of slowing down. With so many choices, for both your viewing and your investing pleasure, how do you know which one to choose?
Here’s what you need to know about whether Disney or Netflix is the better streaming stock buy in 2026.
Disney
The Walt Disney Company touches nearly every corner of the entertainment industry, from theme parks to movie production to TV and streaming. Besides its eponymous resorts, cruise line, film studio, TV channel and more, Disney owns Hulu, ABC, ESPN, Marvel Studios, Pixar, 20th Century Studios and Touchstone Home Entertainment, among others.
According to Fortune, Disney has just under 200 global subscribers to its Disney+ and Hulu streaming services.
The New York Times reported that 7 million Disney+ and Hulu subscribers cancelled their subscriptions in September in protest after Disney took “Jimmy Kimmel Live!” off the air.
Disney stock rose just 3.34% in 2025, but analysts seem to think it has some running room in the next year. Of 31 analysts who cover the company, 20 rate it a buy, 4 say it’s a strong buy, 6 say you should hold, and just one says the stock is underperforming. The average 12-month analyst price target $132.50 vs. the current price of $113.75.
Disney’s trailing twelve-month price-to-earnings ratio, at 16.62, is a big advantage over Netflix.
Netflix
Netflix began as a DVD-rental company and morphed into one of the first streaming services. It now also has a large catalog of original series and movies, including immensely popular properties like “Stranger Things,” “Bridgerton,” “The Crown,” “Squid Game,” and more.
Netflix is the largest streaming service with 300 million global subscribers. The company is negotiating to buy Warner Bros, including HBO and HBO Max, for $72 billion in equity value. The deal may be finalized in 2026, but still faces a hostile takeover bid from Paramount.
Netflix stock performed a little better than Disney in 2025, returning 5.45%. The Netflix P/E ratio of 39.33 makes it more than twice as expensive as Disney, but the analysts still like it. Of the 43 who follow the company, 20 rate it a buy, eight say it’s a strong buy, 13 recommend that you hold, and two say you should sell. The average 12-month analyst price target is $126.19 (compared to the current price of $93.99).
Bottom Line
The choice between Disney and Netflix is not an easy one — both companies have advantages and disadvantages. Savvy investors may want to wait to see how the Warner Bros deal shakes out before making a decision. If you’re looking for the best deal, however, the P/E ratio comparison makes that pretty easy. With Disney at 16.62 and Netflix at 39.33, Disney is clearly the bigger bargain.
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