Netflix Stock Gets All the Headlines, but This Streaming Pick Could Outperform It

By Neil Patel – Apr 10, 2026 at 1:00PM ESTKey PointsIn the last decade, Netflix has posted tremendous growth in subscribers, revenue, and operating income.Thanks to Netflix's monster 2,870% return over the past 15 years, it's received a lot of attention from investors.But this streaming stock is much cheaper than Netflix, which introduces potential valuation upside.Investors tend to agree that Netflix (NFLX +0.48%) deserves all the attention it receives. The disruptive business successfully shook up the media and entertainment industries in recent decades. And its shares, which have risen 2,870% in the past 15 years (as of Apr. 8), have made many investors rich. Netflix grabs the headlines. However, there's one streaming stock that could outperform it over the next five years. Image source: The Motley Fool. Netflix's rise has been impressive In 2015, Netflix had 71 million paying subscribers to its streaming platform. And it reported $6.8 billion in revenue and $306 million in operating income that year. At the time, the business was early in its journey of spearheading the streaming movement. Last year, in 2025, the company posted $45.2 billion in revenue and generated $13.3 billion in operating income. And it had 325 million subscribers as of Dec. 31. All of these figures are significantly higher than those a decade before. An incredible rise like this doesn't just happen to any business. Netflix has become a dominant force in the world of streaming. And it's now a household name. ExpandNYSE: DISWalt DisneyToday's Change(-0.59%) $-0.59Current Price$99.20Key Data PointsMarket Cap$177BDay's Range$98.95 - $100.1552wk Range$82.01 - $124.69Volume160KAvg Vol12MGross Margin31.61%Dividend Yield1.25% This stock is a better buy-and-hold candidate over the next five years Though Netflix is thriving, its valuation isn't cheap. You must be comfortable paying a forward price-to-earnings (P/E) ratio of 31.4 to add the business to your portfolio. That's not exactly an attractive deal. From a valuation perspective, Walt Disney (DIS 0.59%) is a more compelling opportunity. Shares of the House of Mouse trade at a forward P/E multiple of 14.5. This is a 54% discount to Netflix. Even if Disney shares reach the same valuation as the S&P 500 index -- a forward P/E ratio of 20.3 -- that implies 40% upside from its current levels today. Earnings growth is the other tailwind, particularly from the entertainment segment's direct-to-consumer operations, consisting of Disney+ and Hulu (excluding Hulu Live TV). This division posted a 72% year-over-year increase in operating income to $450 million in the fiscal 2026 first quarter (which ended Dec. 27, 2025), good for an 8.4% operating margin. The management team believes that for the full fiscal year, the operating margin here will be 10%, indicating robust growth. This business is one of the few in the streaming industry that can effectively compete with Netflix. The last time Disney provided this data, at the end of fiscal 2025, there were a combined 191 million subscribers between Disney+ and Hulu -- showcasing a global platform. Disney also has an advantage over Netflix in the huge amount of intellectual property that it owns and can use to produce fresh content. Between now and April 2031, Walt Disney is the streaming stock that could outperform Netflix.Read NextApr 9, 2026 •By John BallardNetflix vs. Walt Disney: Consistency vs. Volatility in RevenueApr 8, 2026 •By Adam LevyBest Growth Stocks to Buy in 2026Apr 7, 2026 •By Lyle DalyThe Largest Communications Services Companies by Market Cap in April 2026Apr 5, 2026 •By Justin PopeWalt Disney Has Been a Streaming Story for Years. Here's How The Story Has Changed.Apr 2, 2026 •By Rick MunarrizDisney's OpenAI Investment Is Over. Here's Where the Company Is Focusing Its Efforts in 2026.Mar 29, 2026 •By Neil PatelHow High Can Disney's Streaming Profit Go?About the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedWalt DisneyNYSE: DIS$99.19(-0.60%)-$0.60NetflixNASDAQ: NFLX$102.48(+0.42%)+$0.43*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.