Is Netflix Stock Worth More Than Its Competitors

Over the past twelve months, Netflix (NFLX) increased its revenue faster than Disney, Amazon, Comcast, or Apple. Within that group, only Apple produced a wider operating margin. Yet Netflix shares lost 42.2% over the past year, marking the steepest decline among the five companies. The stock now trades in the middle of the pack at an earnings multiple near Disney's. So what does Netflix give you, for about the same price, that Disney does not?

Netflix Outgrows Disney For A Similar Multiple

Netflix shares currently trade at 21.6 times trailing earnings, compared with 21.9 for Disney, the one peer classed in the same movies and entertainment industry. At that price, Netflix grew its revenue 16.0% over the past twelve months, while Disney grew 4.6%. Netflix also converted 29.7% of its revenue into operating profit, against 15.2% at Disney.

Apple does operate with a wider operating margin, but its business relies on hardware rather than entertainment. Investors pay 38.8 times earnings for Apple, even though the company grew more slowly than Netflix. The numbers put Netflix at or near the top of this group on growth and margin, yet its shares remain priced like Disney's.

How Netflix Earns From Members And Ads

Netflix drew its recent growth from more memberships, higher prices, and higher ads revenue, executives noted on the company's Q2 2026 call. They added that price changes implemented across markets such as the US, Mexico, and Spain during the first half of 2026 have gone well.

Ads remain a small part of the business. Still, executives view the ads plan in the United States as an affordable entry point for new sign-ups. The company expects $3.00 billion of ads revenue in 2026, out of the $51.20 billion in total revenue it forecasts for the year.

Every year, Netflix has steadily retained more of each sale as profit. The company's twelve-month operating margin stood at 17.5% three years ago and 24% two years ago. That metric reached about 30% a year ago and has held there, at 29.7% over the latest twelve months.

Is Netflix's Edge Fading?

Netflix still leads the group on twelve-month growth, only just ahead of Amazon, but its quarterly growth has slowed. Revenue grew 13.4% from a year earlier in Q2 2026, down from the 16.2% pace set in Q1 2026. Executives guided to 12.0% growth for Q3 2026, and Netflix will report those results on October 20, 2026.

Unlike its revenue growth, Netflix's operating margin continues to rise. The company guided to 33.2% for Q3 2026, up from the 32.6% it reported for Q2 2026.

Following the worst year for its shares among the five peers, Netflix currently trades at a multiple near Disney's. That price appears to assume the streaming company's growth will drift down toward its peers'. Netflix has maintained its twelve-month lead so far, yet its quarterly growth has slowed in 2026 even as its margin rose. When the company releases its October 20 report, revenue growth against a year earlier is the number to watch.

Does This Mean You Should Act On NFLX?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

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