Meta Platforms, Inc. (META)vs DIS Holdings, Inc. (DIS)

Quick verdict

Meta Platforms, Inc. (META) and DIS Holdings, Inc. (DIS) appeal to different investors. On our six-factor framework, META scores 3 and DIS scores 3. DIS looks cheaper on the multiples that matter, while META grows faster and META earns higher returns on capital. The two are evenly matched overall, so your priority — value, growth, income or safety — should decide it.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

Meta Platforms, Inc. operates in Internet Content & Information (Communication Services), while DIS Holdings, Inc. sits in Credit Services (Financial Services). The two operate in different sectors, so cyclicality and end-market exposure differ — factor that into any portfolio overlap. META carries a beta of 1.88 versus 1.10 for DIS, meaning META has historically been the more volatile of the two.

Valuation

On valuation, DIS is the cheaper stock. META trades on a forward P/E of 42.61 and EV/EBITDA of 34.29, against 23.87 and 21.93 for DIS. Price-to-sales is 1.48 vs 19.18, and free-cash-flow yield is 4.9% vs 5.6%. A higher multiple is only justified if the company can sustain faster growth or wider margins, which is exactly what the next sections test.

Growth profile

META is the faster grower. META has compounded revenue at 23.5% over three years with EPS growth of 25.6%, while DIS has delivered 16.6% revenue and 17.4% EPS growth. Growth like this is the single biggest driver of long-term returns, but it also tends to come with a richer valuation, so it must be weighed against the multiples above.

Profitability and quality

On profitability and quality, META is stronger. META posts a 45.0% operating margin, 43.8% return on equity and 23.9% return on invested capital. DIS posts 31.8%, 31.1% and 34.4% respectively. Return on invested capital above roughly 15% is a hallmark of a durable competitive advantage, so this metric deserves particular attention.

Balance-sheet risk

DIS has the safer balance sheet. META carries net-debt/EBITDA of 2.55x with a current ratio of 2.32, versus 1.76x and 2.82 for DIS. Lower leverage gives a company more room to invest through a downturn and reduces the risk of dilution or distress.

Price performance and shareholder returns

Over the past year META returned 13.9% against -9.4% for DIS; on a three-year annualised basis it is 47.4% vs 24.9%. META yields 0.0% and DIS yields 4.0%. Past performance never guarantees future results, but the multi-year track record shows how the market has rewarded each business so far.

Which stock fits which investor

For value-oriented investors, DIS is the better fit on today's multiples. Growth investors will likely prefer META, which is expanding faster. Income investors should lean toward DIS for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour META for its superior returns on capital. This is a comparison of facts, not a recommendation — your time horizon, risk tolerance and existing holdings should drive the final decision.

• Value: DIS
• Growth: META
• Income: DIS
• Quality: META

Frequently asked questions

Is META or DIS the better buy right now?

Neither is universally "better." META scores 3 and DIS scores 3 on our six-factor framework. DIS is cheaper, META grows faster, and META is higher quality — so the right pick depends on your objective.

Which stock is cheaper, META or DIS?

DIS is the cheaper stock across forward P/E (42.61 vs 23.87), EV/EBITDA (34.29 vs 21.93) and price-to-sales (1.48 vs 19.18).

Which has grown faster, META or DIS?

META has the stronger growth profile, with three-year revenue CAGR of 23.5% for META versus 16.6% for DIS.

Which stock pays a bigger dividend?

META yields 0.0% and DIS yields 4.0%, so DIS is the stronger income choice.

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