Disney Stock vs. Netflix: Which Streaming Giant Is the Better Buy in 2026?

Group 1: Disney - The Walt Disney Company has a diverse portfolio in the entertainment industry, including theme parks, movie production, and streaming services like Disney+ and Hulu, with nearly 200 million global subscribers [2] - In September, 7 million subscribers canceled their Disney+ and Hulu subscriptions due to the removal of "Jimmy Kimmel Live!" from the air [3] - Disney's stock rose by 3.34% in 2025, with 20 out of 31 analysts rating it a buy and an average 12-month price target of $132.50 compared to its current price of $113.75 [4] - Disney's trailing twelve-month price-to-earnings (P/E) ratio is 16.62, which is significantly lower than Netflix's [4] Group 2: Netflix - Netflix, originally a DVD rental service, has evolved into a leading streaming platform with a catalog of original series and movies, boasting 300 million global subscribers [5][6] - The company is negotiating a $72 billion equity deal to acquire Warner Bros, including HBO and HBO Max, which may finalize in 2026 but faces competition from a hostile takeover bid by Paramount [6] - Netflix's stock performed slightly better than Disney in 2025, returning 5.45%, with a P/E ratio of 39.33, making it more than twice as expensive as Disney [7] - Of the 43 analysts covering Netflix, 20 rate it a buy, with an average 12-month price target of $126.19 compared to its current price of $93.99 [7] Group 3: Comparison and Conclusion - The choice between Disney and Netflix presents challenges, as both companies have distinct advantages and disadvantages [8] - The P/E ratio comparison indicates that Disney, with a ratio of 16.62, is a more attractive investment compared to Netflix's 39.33 [8]