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Disney's Abu Dhabi expansion and Epic Universe opening drive theme park competition intensification.
The Walt Disney Company (DIS - Free Report) and Comcast Corporation (CMCSA - Free Report) represent two entertainment titans locked in an increasingly competitive battle for theme park supremacy and streaming dominance. Disney, the century-old entertainment pioneer with its Magic Kingdom empire and streaming flagship Disney+, faces off against Comcast's NBCUniversal division, which combines its cable infrastructure might with Universal Studios' thrilling attractions and the Peacock streaming platform.
Both companies find themselves at critical junctures in 2025. Disney's theme parks business has emerged as its primary profit engine, generating 59% of operating income in fiscal 2024, while successfully turning its streaming operations profitable after years of losses. Meanwhile, Comcast celebrates the May 22 opening of Universal's Epic Universe in Orlando — the first major new U.S. theme park in over two decades — even as its core connectivity business faces headwinds from cord-cutting and broadband competition.
Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for DIS Stock
Disney's investment thesis centers on its unparalleled content creation machine and the company's successful transformation into a profitable streaming powerhouse. Disney's streaming business continued to grow during the fiscal third quarter, with operating income for the segment reaching $346 million against a loss in the same period last year, and an addition of 1.8 million Disney+ subscribers.
The theme parks segment continues to demonstrate remarkable resilience and growth potential. Revenues for Disney's experiences segment, which includes theme parks, resorts and cruises as well as consumer products, increased 8% to $9.09 billion, with domestic theme parks showing particularly strong performance. Disney's parks business benefits from pricing power and customer loyalty that few competitors can match, evidenced by Walt Disney World achieving its biggest fiscal third-quarter on record despite economic uncertainties.
The Walt Disney Company and Miral, Abu Dhabi's leading creator of immersive destinations and experiences, announced an agreement to create a landmark Disney theme park resort in Abu Dhabi, United Arab Emirates. This seventh Disney theme park resort taps into the UAE, being located within a four-hour flight of one-third of the world's population, representing a massive addressable market.
Disney's content momentum is exemplified by Lilo & Stitch becoming Hollywood's first billion-dollar film of 2025 and the company's fourth billion-dollar release in just over a year, driving merchandise sales growth exceeding 70% and significant streaming viewership. Disney's intellectual property ecosystem creates synergistic value across all business segments, from theatrical releases to streaming content to theme park attractions and merchandise.
Disney's massive $60 billion theme park expansion commitment over the next decade signals management's confidence in the parks business as a growth driver. Major developments include new attractions and refurbishments of classics across Walt Disney World, including the Muppets takeover of Rock 'n' Roller Coaster and new Rainbow Caverns for Big Thunder Mountain Railroad. ESPN's evolution into a comprehensive streaming platform, with ESPN and the NFL reaching an agreement that includes expanded NFL highlight rights within multiple fan-engagement platforms, further diversifies Disney's revenue streams.
The consensus mark for fiscal 2025 earnings is pegged at $5.85 per share, indicating 17.71% year-over-year growth.
Comcast presents a diversified media and technology investment with steady cash generation capabilities and attractive valuation metrics. The company's second-quarter results demonstrated solid performance with adjusted EPS growth of 3% and $4.5 billion in free cash flow generation, while the successful Epic Universe opening drove theme park revenue growth of 19% to $2.35 billion. This diversification across connectivity, content, and experiences provides multiple avenues for growth and helps offset challenges in traditional cable segments.
Comcast's streaming platform Peacock showed meaningful progress, with paid subscribers increasing 24.2% year over year to 41 million. Peacock’s revenues in the second quarter jumped 18% to $1.2 billion. The platform benefits from exclusive NFL content and the upcoming addition of NBA and WNBA programming, positioning it competitively in the sports streaming landscape. The company's mobile business achieved record performance with 378,000 line additions in the second quarter, demonstrating the effectiveness of bundling strategies with 90% of Xfinity smartphone traffic traveling over WiFi networks.
Epic Universe represents competitive achievement, featuring five immersive worlds and fifty-plus attractions, elevating Universal Orlando into a premier week-long destination. Early results show higher per-capita spending and attendance across Universal Orlando Resort, though management acknowledged ongoing ride reliability and ticketing challenges. International expansion continues with the announced United Kingdom Universal Theme Park and Resort development.
Despite broadband customer losses, management has implemented go-to-market strategy changes, including five-year price guarantees and simplified offerings that are expected to improve retention over time.
The consensus mark for 2025 earnings is pegged at $4.30 per share, indicating decline of 0.69% year-over-year.
Disney trades at 18.34x P/E versus Comcast's 7.6x multiple. This valuation disparity reflects business quality differences and growth trajectory expectations. Disney's premium reflects streaming profitability, global expansion opportunities, and superior content monetization across theatrical, streaming, merchandise, and theme park platforms.
DIS vs CMCSA P/E Ratio
Image Source: Zacks Investment Research
Recent performance favors Disney significantly. In the year-to-date period, DIS delivered 5.9% returns against CMCSA's 10.3% decline, reflecting investor confidence in Disney's streaming turnaround and theme park resilience versus Comcast's connectivity business pressures.
DIS Outperforms CMCSA Year-to-date
Image Source: Zacks Investment Research
Conclusion
Disney emerges as the stronger choice despite Comcast's attractive valuation. Disney's streaming transformation, dominant theme park portfolio, and expanding global footprint position sustained growth. Abu Dhabi expansion opens vast markets while domestic parks generate record revenues. Disney's content creation and intellectual property ecosystem provide multiple revenue streams and competitive moats that Comcast cannot match. While Epic Universe represents impressive innovation, Disney's proven adaptation across economic cycles, superior brand loyalty, and pricing power suggest better long-term upside. Investors should buy Disney for transformation and global expansion prospects, while awaiting better entry points for Comcast as connectivity headwinds persist. DIS currently carries a Zacks Rank #2 (Buy), whereas CMCSA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Disney vs. Comcast: Which Theme Park Giant is a Stronger Pick?
Key Takeaways
The Walt Disney Company (DIS - Free Report) and Comcast Corporation (CMCSA - Free Report) represent two entertainment titans locked in an increasingly competitive battle for theme park supremacy and streaming dominance. Disney, the century-old entertainment pioneer with its Magic Kingdom empire and streaming flagship Disney+, faces off against Comcast's NBCUniversal division, which combines its cable infrastructure might with Universal Studios' thrilling attractions and the Peacock streaming platform.
Both companies find themselves at critical junctures in 2025. Disney's theme parks business has emerged as its primary profit engine, generating 59% of operating income in fiscal 2024, while successfully turning its streaming operations profitable after years of losses. Meanwhile, Comcast celebrates the May 22 opening of Universal's Epic Universe in Orlando — the first major new U.S. theme park in over two decades — even as its core connectivity business faces headwinds from cord-cutting and broadband competition.
Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for DIS Stock
Disney's investment thesis centers on its unparalleled content creation machine and the company's successful transformation into a profitable streaming powerhouse. Disney's streaming business continued to grow during the fiscal third quarter, with operating income for the segment reaching $346 million against a loss in the same period last year, and an addition of 1.8 million Disney+ subscribers.
The theme parks segment continues to demonstrate remarkable resilience and growth potential. Revenues for Disney's experiences segment, which includes theme parks, resorts and cruises as well as consumer products, increased 8% to $9.09 billion, with domestic theme parks showing particularly strong performance. Disney's parks business benefits from pricing power and customer loyalty that few competitors can match, evidenced by Walt Disney World achieving its biggest fiscal third-quarter on record despite economic uncertainties.
The Walt Disney Company and Miral, Abu Dhabi's leading creator of immersive destinations and experiences, announced an agreement to create a landmark Disney theme park resort in Abu Dhabi, United Arab Emirates. This seventh Disney theme park resort taps into the UAE, being located within a four-hour flight of one-third of the world's population, representing a massive addressable market.
Disney's content momentum is exemplified by Lilo & Stitch becoming Hollywood's first billion-dollar film of 2025 and the company's fourth billion-dollar release in just over a year, driving merchandise sales growth exceeding 70% and significant streaming viewership. Disney's intellectual property ecosystem creates synergistic value across all business segments, from theatrical releases to streaming content to theme park attractions and merchandise.
Disney's massive $60 billion theme park expansion commitment over the next decade signals management's confidence in the parks business as a growth driver. Major developments include new attractions and refurbishments of classics across Walt Disney World, including the Muppets takeover of Rock 'n' Roller Coaster and new Rainbow Caverns for Big Thunder Mountain Railroad. ESPN's evolution into a comprehensive streaming platform, with ESPN and the NFL reaching an agreement that includes expanded NFL highlight rights within multiple fan-engagement platforms, further diversifies Disney's revenue streams.
The consensus mark for fiscal 2025 earnings is pegged at $5.85 per share, indicating 17.71% year-over-year growth.
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
The Case for CMCSA Stock
Comcast presents a diversified media and technology investment with steady cash generation capabilities and attractive valuation metrics. The company's second-quarter results demonstrated solid performance with adjusted EPS growth of 3% and $4.5 billion in free cash flow generation, while the successful Epic Universe opening drove theme park revenue growth of 19% to $2.35 billion. This diversification across connectivity, content, and experiences provides multiple avenues for growth and helps offset challenges in traditional cable segments.
Comcast's streaming platform Peacock showed meaningful progress, with paid subscribers increasing 24.2% year over year to 41 million. Peacock’s revenues in the second quarter jumped 18% to $1.2 billion. The platform benefits from exclusive NFL content and the upcoming addition of NBA and WNBA programming, positioning it competitively in the sports streaming landscape. The company's mobile business achieved record performance with 378,000 line additions in the second quarter, demonstrating the effectiveness of bundling strategies with 90% of Xfinity smartphone traffic traveling over WiFi networks.
Epic Universe represents competitive achievement, featuring five immersive worlds and fifty-plus attractions, elevating Universal Orlando into a premier week-long destination. Early results show higher per-capita spending and attendance across Universal Orlando Resort, though management acknowledged ongoing ride reliability and ticketing challenges. International expansion continues with the announced United Kingdom Universal Theme Park and Resort development.
Despite broadband customer losses, management has implemented go-to-market strategy changes, including five-year price guarantees and simplified offerings that are expected to improve retention over time.
The consensus mark for 2025 earnings is pegged at $4.30 per share, indicating decline of 0.69% year-over-year.
Comcast Corporation Price and Consensus
Comcast Corporation price-consensus-chart | Comcast Corporation Quote
Valuation and Price Performance Comparison
Disney trades at 18.34x P/E versus Comcast's 7.6x multiple. This valuation disparity reflects business quality differences and growth trajectory expectations. Disney's premium reflects streaming profitability, global expansion opportunities, and superior content monetization across theatrical, streaming, merchandise, and theme park platforms.
DIS vs CMCSA P/E Ratio
Image Source: Zacks Investment Research
Recent performance favors Disney significantly. In the year-to-date period, DIS delivered 5.9% returns against CMCSA's 10.3% decline, reflecting investor confidence in Disney's streaming turnaround and theme park resilience versus Comcast's connectivity business pressures.
DIS Outperforms CMCSA Year-to-date
Image Source: Zacks Investment Research
Conclusion
Disney emerges as the stronger choice despite Comcast's attractive valuation. Disney's streaming transformation, dominant theme park portfolio, and expanding global footprint position sustained growth. Abu Dhabi expansion opens vast markets while domestic parks generate record revenues. Disney's content creation and intellectual property ecosystem provide multiple revenue streams and competitive moats that Comcast cannot match. While Epic Universe represents impressive innovation, Disney's proven adaptation across economic cycles, superior brand loyalty, and pricing power suggest better long-term upside. Investors should buy Disney for transformation and global expansion prospects, while awaiting better entry points for Comcast as connectivity headwinds persist. DIS currently carries a Zacks Rank #2 (Buy), whereas CMCSA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.