Netflix vs Walt Disney: Business Model & Financial Comparison 2026
Netflix · Communication Services / Entertainment·Walt Disney · Communication Services / Entertainment
Financial Comparison
| Metric | NFLXNetflix | DISWalt Disney |
|---|---|---|
| Market Cap | $420.03B | $180.07B |
| Revenue (TTM) | $45.18B | $95.72B |
| Revenue Growth | 17.6% | 5.2% |
| Gross Margin | 48.5% | 37.3% |
| Operating Margin | 24.5% | 15.4% |
| Net Margin | 24.3% | 12.8% |
| Return on Equity | 42.8% | 12.0% |
| P/E (Trailing) | 39.1x | 15.0x |
| P/E (Forward) | 25.8x | 13.8x |
| Free Cash Flow | $24.82B | $3.17B |
| Cash | $9.06B | $5.68B |
| Total Debt | $16.98B | $46.64B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Netflix
Netflix stands as the global leader in subscription streaming entertainment. Generating $45.18 billion in annual revenue (growing 17.6% year-over-year) and carrying a market capitalization of $420.67 billion, the company has cemented its position as a foundational player in the global Entertainment landscape. Under the leadership of Greg Peters, Netflix continues to execute on a multi-year strategic vision that balances growth investment with sha…
Full Netflix analysis →Walt Disney
The Walt Disney Company stands as a leading company in Communication Services. Generating $95.72 billion in annual revenue (growing 5.2% year-over-year) and carrying a market capitalization of $181.61 billion, the company has cemented its position as a foundational player in the global Entertainment landscape. Under the leadership of its leadership team, The Walt Disney Company continues to execute on a multi-year strategic vision that balances g…
Full Walt Disney analysis →SWOT Analysis Comparison
Strengths
Netflix
- With a market capitalization of $420.67B, Netflix is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller
- Netflix's gross margin of 48.5% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 24.5% demonstrates disciplined c
- Revenue grew 17.6% year-over-year to $45.18B, indicating strong demand for Netflix's products and services and outperformance relative to many industry peers.
Walt Disney
- With a market capitalization of $181.61B, The Walt Disney Company is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital acc
- The Walt Disney Company maintains a gross margin of 37.3% and operating margin of 15.4%, demonstrating consistent operational execution and cost discipline in a competitive market.
- The Walt Disney Company generated $3.17B in free cash flow, providing financial flexibility to invest in growth initiatives, return capital to shareholders, or strengthen the balance sheet.
Weaknesses
Netflix
- Netflix's debt-to-equity ratio of 63.8 indicates meaningful financial leverage. Total debt stands at $16.98B against $9.06B in cash and equivalents.
- Debt/equity of 63.78 reflects heavy content investment financed with debt
- No live sports rights portfolio compared to Disney/Amazon
Walt Disney
- With 175,560 employees globally, The Walt Disney Company faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller,
Opportunities
Netflix
- The rapid advancement of generative AI and large language models presents Netflix with opportunities to automate operations, enhance products, and develop new AI-native services. Companies in Communic
- Netflix operates in the Entertainment segment of the broader Communication Services sector, which represents a $2.5 trillion by 2027. Even modest share gains in this environment translate to meaningfu
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Netflix
Walt Disney
- The rapid advancement of generative AI and large language models presents The Walt Disney Company with opportunities to automate operations, enhance products, and develop new AI-native services. Compa
- The Walt Disney Company operates in the Entertainment segment of the broader Communication Services sector, which represents a $2.5 trillion by 2027. Even modest share gains in this environment transl
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for The Wal
Threats
Netflix
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Netflix's revenue is not fully insulated from macroeconomic cycles, and a recession scenario
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Netflix's business
- The technology sector evolves at a pace where today's competitive advantages can erode quickly. New entrants with AI-native approaches, open-source alternatives, or disruptive business models could ch
Walt Disney
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. The Walt Disney Company's revenue is not fully insulated from macroeconomic cycles, and a re
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on The Walt Disney Com
- The technology sector evolves at a pace where today's competitive advantages can erode quickly. New entrants with AI-native approaches, open-source alternatives, or disruptive business models could ch
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Open Comparison ToolNetflix vs Walt Disney: FAQ
- Is Netflix bigger than Walt Disney?
- By market capitalization, Netflix is larger at $420.03B vs Walt Disney's $180.07B.
- Which has better profit margins — Netflix or Walt Disney?
- Netflix has higher net profit margins (24.3%) compared to Walt Disney (12.8%). Gross and operating margins are compared in the table above.
- What sectors do Netflix and Walt Disney operate in?
- Netflix operates in the Communication Services sector (Entertainment). Walt Disney operates in the Communication Services sector (Entertainment).
- How does Netflix's revenue compare to Walt Disney's?
- Netflix generates $45.18B in annual revenue (TTM) while Walt Disney generates $95.72B. Walt Disney is the larger company by revenue as of 2026.