The Walt Disney Company (DIS) vs Netflix, Inc. (NFLX)

The Walt Disney Company and Netflix, Inc. are both Entertainment companies. Netflix, Inc. is the larger, with a market value of $298.1B against $182.1B — 1.6× the size. The Walt Disney Company trades at the lower P/E: 21.8× against 22.0×. Netflix, Inc. grew revenue faster over the last twelve months: 16.0% against 4.58%. Netflix, Inc. has the higher net margin (28.2% vs 8.70%) and the higher return on invested capital (27.3% vs 5.35%). Across the 22 metrics below, Netflix, Inc. leads on 14 and The Walt Disney Company on 8.

Valuation

Metric DIS NFLX Entertainment median
P/E 21.84 22.03 22.03
P/S 1.87 6.16 1.47
P/B 1.58 9.89 2.00
Price to free cash flow 22.25 28.85 16.60
EV/EBITDA 11.02 9.39 9.65
EV/Sales 2.28 6.22 1.76
Earnings yield 4.58% 4.54% (0.67%)
Free cash flow yield 4.50% 3.47% 3.26%

Profitability

Metric DIS NFLX Entertainment median
Gross margin 37.60% 49.12% 45.02%
Operating margin 13.66% 29.68% 2.30%
Net margin 8.70% 28.22% 0.00%
Free cash flow margin 8.39% 23.06% 1.56%
Return on equity 7.46% 49.54% 0.00%
Return on assets 4.29% 24.47% 0.00%
Return on invested capital 5.35% 27.31% 0.00%

Growth

Metric DIS NFLX Entertainment median
Revenue growth (TTM) 4.58% 16.02% 5.07%
EPS growth (last fiscal year) 151.84% 27.58% —
Revenue growth, 5-year CAGR 7.63% 12.57% 10.25%
Net income growth, 5-year CAGR 0.00% 31.80% 0.00%

Health

Metric DIS NFLX Entertainment median
Debt to equity 0.39 0.39 0.46
Current ratio 0.71 1.14 0.86
Net debt to EBITDA 1.89 0.15 0.72

Dividend

Metric DIS NFLX Entertainment median
Dividend yield 0.54% — 1.16%
Payout ratio 0.00 0.00 0.00

Size

Metric DIS NFLX Entertainment median
Market cap 182.11b 298.05b 1.87b

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