<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Netflix booked $1.5 billion in ad revenue in 2025, and podcasting could unlock even more sales. </li><li>Walt Disney keeps building out its experiences division, which delivered record operating income of $10 billion in its fiscal 2025. </li><li>Both stocks have lagged the S&amp;P 500 over the last year.</li><li>10 stocks we like better than Walt Disney ›</li></ul>Both Netflix (NASDAQ: NFLX) and Walt Disney (NYSE: DIS) are powerhouses of entertainment content, but they also have in common that their stock prices have lagged the S&amp;P 500 (SNPINDEX: ^GSPC) over the last year. However, with each having the potential to tap into a few revenue growth catalysts in 2026, that could change.Here's what to consider when evaluating which company could be the better buy in 2026 and beyond.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MDI5NS93b21hbi1zdHJlYW1pbmctb24tdHYtd2l0aC1wb3Bjb3JuLTEyMDF4ODAxLWQyMWI0NWQuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MDI5NS93b21hbi1zdHJlYW1pbmctb24tdHYtd2l0aC1wb3Bjb3JuLTEyMDF4ODAxLWQyMWI0NWQuanBnJnc9NzAw"/>Image source: Getty Images. <h2>Why Netflix could be the better buy</h2>When Netflix walked away from its attempt to acquire the bulk of the assets of Warner Bros. Discovery, many shareholders breathed a sigh of relief, as there was a view that the price of its proposed deal was too high. Now, the streaming giant's management team can turn its focus back to building new endeavors like its podcast business and its experiential locations.As Netflix seeks audience-growth opportunities, video podcasting could help it reach more viewers than it has been attracting through its TV series and movies. In addition to increased subscription revenue from adding new subscribers, podcasting offers Netflix an opportunity to boost its advertising revenue beyond the $1.5 billion it generated in 2025. That additional revenue could come in the form of licensing deals and sponsorships. In comparison, Alphabet reported $11.3 billion in YouTube ad revenue in Q4 2025 alone. It may also be taking a lesson from Disney in terms of building out its live experiences offerings. In 2025, Netflix launched its first Netflix House locations in Philadelphia and Dallas. Each of these locations is like an indoor theme park, more than 100,000 square feet in size, with activities, merchandise, and food inspired by Netflix shows. For instance, at the Philadelphia Netflix House, you can play carnival games based on the show Wednesday, while you can play games based on Squid Game at the Dallas location.So far, the company isn't making public the specific financial results around the Netflix Houses, but as Disney has been demonstrating for decades, selling experiences connected to popular franchises can be a very profitable business.<h2>Why Disney could be the better buy</h2>Disney has a vast quantity of attractive assets through its iconic content library, and its profits from its streaming segment have continued to climb.It also had several hits at the box office last year, with $6.5 billion in global sales, thanks in part to Zootopia 2, Lilo &amp; Stitch, and Fantastic Four: First Steps.In addition, it has a unique moat in the form of its experiences division, which includes its theme parks and cruises.In its fiscal 2025 Q4, which ended Sept. 27, that segment posted a record operating income of $1.9 billion, with its domestic parks and experiences contributing $920 million of that total.For fiscal 2025, Disney's experiences division also recorded record operating income of $10 billion.<h2>Deciding where to invest</h2>The question of whether to invest in Disney or Netflix really comes down to knowing who you are as an investor.If you're a more aggressive investor, Netflix may be a better fit for your portfolio. Trading at a forward price-to-earnings (P/E) ratio of 30, Netflix is still priced for growth, but its premium is significantly lower than it was in the last few quarters.For example, at the end of June 2025, Netflix's forward P/E was 53.7. That now-lower P/E isn't a bad thing, as it means it will be easier for Netflix to meet and exceed investors' expectations.You'll still have to be prepared for some volatility, as the stock has a beta of 1.7, making it more volatile than the broader market.If you're a more conservative investor, Disney may be a better fit. You can see the stark difference between the two by looking at its P/E of 14.9. For Disney, that's even lower than where it's been the last several quarters, suggesting it could be a value play.The Disney stock price does experience some whipsawing, but its beta of 1.4 is lower than Netflix's. It will also pay you a dividend that yields roughly 1.5% at the current share price.If you value stock price appreciation, Netflix may be the stock you want to consider. If you appreciate more of a value play and like receiving dividends on top of that, look at Disney.<h2>Should you buy stock in Walt Disney right now?</h2> Before you buy stock in Walt Disney, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Walt Disney wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $513,407!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,237!* Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 188% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 18, 2026. Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Netflix, Walt Disney, and Warner Bros. Discovery. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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Netflix and Disney are both major players in the entertainment industry, but their stock prices have underperformed compared to the S&P 500 over the past year. Netflix generated $1.5 billion in ad revenue in 2025 and is exploring podcasting and experiential locations to boost growth. Disney, with a strong content library and record operating income of $10 billion from its experiences division, remains a solid investment. Aggressive investors may prefer Netflix for growth potential, while conservative investors might favor Disney for its value and dividend yield.

- Netflix generated $1.5 billion in ad revenue in 2025 and is exploring podcasting and experiential offerings for growth.  
- Disney's experiences division achieved record operating income of $10 billion for fiscal 2025, benefiting from popular films and theme parks.  
- Investors must decide between Netflix's growth potential and Disney's value play, considering each company's financial metrics and market volatility.

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Netflix vs. Disney: Which Streaming Giant Is the Better Buy for 2026 and Beyond?