Valuation is precisely why I believe Disney is the better streaming stock to buy in 2025. Its stock trades at a forward P/E ratio of 20, a sizable 50% discount to Netflix. Add this to competitive strengths and rising profits, and it can produce market-beating returns for investors over the next few years.

Netflix remains a strong player but lacks the upside potential and risk-reward balance to justify its valuation and is unlikely to outperform the market. Read more here.

Netflix shares have roughly doubled in the past year, setting a high bar for future growth as the company's market capitalization overtakes the valuations of rivals Disney, Comcast, Warner Bros. Discovery,