Disney vs Netflix
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KIRA’s take AI analyst
I put Disney and Netflix side by side, using each one’s latest annual report. Here is what stands out:
- Disney is the larger business, with $94.4B of revenue in fiscal 2025 against $45.2B for Netflix, about 2.1 times as much.
- Netflix grew revenue faster (15.9%, against 3.4%).
- Netflix kept more of each dollar of sales as operating profit (29.5% operating margin, against 18.6%).
- Netflix turned more of its sales into free cash flow (20.9% FCF margin, against 10.7%).
- Netflix earned a higher return on the capital invested in it (36.7%, against 11.8%).
- Investors pay more for each dollar of Disney’s earnings: a P/E of 22.8x against 18.5x for Netflix.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Disney
DIS
0/10
Netflix
NFLX
9/10
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | DIS FY25 | NFLX FY25 |
|---|---|---|
| Size | ||
| Market cap | $192.4B | $268.1B |
| Revenue | $94.4B | $45.2B |
| Free cash flow | $10.1B | $9.5B |
| Net income | $12.4B | $11.0B |
| Growth | ||
| Revenue growth | 3.4% | 15.9% |
| 5-year growth | 7.6% | 12.6% |
| Share count change | −1.1% | −1.1% |
| Profitability | ||
| Gross margin | — | 48.5% |
| Operating margin | 18.6% | 29.5% |
| Net margin | 13.1% | 24.3% |
| FCF margin | 10.7% | 20.9% |
| Return on capital | 11.8% | 36.7% |
| Return on equity | 11.8% | 42.8% |
| Balance sheet | ||
| Net debt | $36.5B | $5.4B |
| Net debt / EBITDA | 1.6x | 0.4x |
| Dividends and buybacks | $5.3B | $9.1B |
| Valuation & quality | ||
| P/E | 22.8x | 18.5x |
| Piotroski F-score | 7 | 7 |
Ten years
Revenue
FY16
DIS —
NFLX $8.8B
FY17
DIS $55.1B
NFLX $11.7B
FY18
DIS $59.4B
NFLX $15.8B
FY19
DIS $69.6B
NFLX $20.2B
FY20
DIS $65.4B
NFLX $25.0B
FY21
DIS $67.4B
NFLX $29.7B
FY22
DIS $82.7B
NFLX $31.6B
FY23
DIS $88.9B
NFLX $33.7B
FY24
DIS $91.4B
NFLX $39.0B
FY25
DIS $94.4B
NFLX $45.2B
DIS
NFLX
Operating margin
FY16
DIS —
NFLX 4.3%
FY17
DIS 26.8%
NFLX 7.2%
FY18
DIS 26.4%
NFLX 10.2%
FY19
DIS 21.3%
NFLX 12.9%
FY20
DIS 12.4%
NFLX 18.3%
FY21
DIS 11.5%
NFLX 20.9%
FY22
DIS 14.7%
NFLX 17.8%
FY23
DIS 14.5%
NFLX 20.6%
FY24
DIS 17.1%
NFLX 26.7%
FY25
DIS 18.6%
NFLX 29.5%
DIS
NFLX
Free cash flow
FY16
DIS —
NFLX −$1.6B
FY17
DIS $8.7B
NFLX −$2.0B
FY18
DIS $9.8B
NFLX −$2.9B
FY19
DIS $1.1B
NFLX −$3.1B
FY20
DIS $3.6B
NFLX $1.9B
FY21
DIS $2.0B
NFLX −$132M
FY22
DIS $1.1B
NFLX $1.6B
FY23
DIS $4.9B
NFLX $6.9B
FY24
DIS $8.6B
NFLX $6.9B
FY25
DIS $10.1B
NFLX $9.5B
DIS
NFLX
Return on capital
FY16
DIS —
NFLX 7.4%
FY17
DIS —
NFLX 14.2%
FY18
DIS —
NFLX 16.6%
FY19
DIS 11.3%
NFLX 16.2%
FY20
DIS 4.8%
NFLX 21.7%
FY21
DIS 5.9%
NFLX 24.5%
FY22
DIS 6.1%
NFLX 17.7%
FY23
DIS 6.7%
NFLX 21.3%
FY24
DIS 8.4%
NFLX 31.0%
FY25
DIS 11.8%
NFLX 36.7%
DIS
NFLX
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.