DIS vs. PARA: Which Streaming Player Has Better Potential in 2H25?

The streaming wars continue intensifying as traditional media giants battle for market dominance. Disney DIS and Paramount Global PARA represent fundamentally different trajectories in entertainment's evolution. Both leverage vast content libraries and iconic brands for streaming platforms, yet their recent financial performance reveals starkly different outlooks.

Disney's unmatched franchise portfolio, including Marvel, Star Wars and Pixar, has transformed Disney+ into a global powerhouse alongside ESPN+ and Hulu. Paramount Global attempts to leverage CBS’ broadcasting strength and Paramount+ while facing operational challenges and pending Skydance acquisition discussions. 

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 second-quarter fiscal 2025 results demonstrate remarkable operational excellence across its diversified portfolio. The company delivered fiscal second-quarter 2025 adjusted EPS up 20% from the prior year, with first half fiscal 2025 adjusted EPS up 32%, showcasing continued execution across strategic priorities, including the production of exceptional creative content, achieving significant streaming profitability, continuing ESPN's digital evolution and turbocharging Experiences segment growth among others.

The streaming business represents Disney's most compelling growth driver, with Entertainment Direct-to-Consumer operating income improving to $336 million. Disney+ ended the quarter with more than 180 million subscriptions, increasing 2.5 million compared to the fiscal first quarter. This profitability milestone, achieved ahead of expectations, validates Disney's premium content strategy and pricing power. The content pipeline remains unmatched, with Mufasa: The Lion King proving long-staying power, Thunderbolts currently the world's number one movie, and highly anticipated titles coming to theaters later this year.

Disney's Experiences segment continues delivering exceptional results through strategic investments, driving long-term growth. The company currently has more expansion projects underway globally, including an agreement with Miral to create a landmark Disney theme park resort in Abu Dhabi, United Arab Emirates. The upcoming 2025 content slate, including Springsteen: Deliver Me From Nowhere, Freakier Friday and Mickey Mouse Clubhouse+, demonstrates Disney's ability to continuously refresh and expand intellectual property across multiple platforms and demographics.

The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $94.89 billion, indicating 3.86% year-over-year growth, with earnings expected to increase 15.9% to $5.76 per share. These projections suggest steady growth ahead.

The Walt Disney Company Price and Consensus

The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

The Case for PARA Stock

Paramount Global's first-quarter 2025 results reveal persistent structural challenges despite management's optimistic presentation. Total company revenues decreased 6%, including an 8 percentage point Super Bowl impact, with advertising revenues declining 19%. While excluding Super Bowl comparison shows 2% revenue growth, this modest improvement masks underlying operational weaknesses and poor strategic positioning.

The streaming business remains deeply unprofitable despite subscriber growth, facing intensifying competitive pressures. Paramount+ reached 79 million global subscribers, up 11% year over year, with 1.5 million quarterly additions, but DTC adjusted OIBDA improved only $177 million to a $109 million loss. This substantial ongoing loss, despite subscriber growth, highlights fundamental monetization challenges and the inability to achieve necessary scale economics for sustainable profitability. Digital advertising trends, particularly affecting Pluto TV, reflect broader market share losses to larger competitors.

Linear television continues deteriorating rapidly, with TV Media revenues decreasing 13% to $4.5 billion, while affiliate and subscription revenues declined 9% due to subscriber declines and recent renewals. The pending Skydance acquisition, expected in the first half of 2025, creates significant uncertainty about future strategic direction and capital allocation priorities. Management's acknowledgment of growing macroeconomic uncertainty and inability to provide clear full-year guidance further undermines investor confidence in near-term prospects.

The Zacks Consensus Estimate for PARA’s 2025 earnings is pegged at $1.3 per share, indicating a 15.58% decrease year over year. The consensus estimate for 2025 revenues is pinned at $28.37 billion, suggesting a year-over-year decline of 2.88%.

Paramount Global Price and Consensus

Paramount Global price-consensus-chart | Paramount Global Quote

Valuation and Price Performance Comparison

Recent market performance favors Disney, with shares returning 15.9% over the past three months, significantly outperforming Paramount's 6.1% rise and the broader Zacks Consumer Discretionary sector.

DIS Outperforms PARA, Sector in 3-Month Period

From a valuation perspective, both stocks trade at relatively attractive levels, though with important distinctions. Disney's price-to-earnings ratio of 19.24x commands a premium over Paramount's 8.44x multiple, reflecting the market's recognition of Disney's superior business quality and growth prospects.

Disney's higher valuation is supported by stronger cash generation capabilities, diversified revenue streams across Parks, Films, and profitable streaming operations, and proven ability to monetize intellectual property globally. The company's achievement of streaming profitability while maintaining subscriber growth justifies investor willingness to pay a premium for quality and execution. Conversely, Paramount's discounted valuation reflects fundamental business deterioration, with declining linear revenues, unprofitable streaming operations, and limited competitive advantages in an increasingly consolidated media landscape.

DIS vs. PARA: P/E F12M Ratio

Conclusion

Disney emerges as the superior investment choice for the second half of 2025, demonstrating operational excellence across all segments while achieving streaming profitability ahead of schedule. Its unmatched content portfolio, global brand recognition, successful theme park operations, and strong balance sheet position the company for sustained growth. Conversely, Paramount Global faces persistent profitability challenges, declining linear revenues, and corporate uncertainty. Investors should hold Disney stock while divesting Paramount positions, as Disney's diversified revenue streams, stronger competitive moat, and proven execution offer significantly better upside potential. DIS currently carries a Zacks Rank #3 (Hold), whereas PARA has a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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