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Walt Disney Company (The) (DIS) vs Morgan Stanley (MS): Which Is the Better Buy in 2026?

As of 2026-08-03, DIS is undervalued at $96, with a DCF intrinsic value of $254584003147 and a margin of safety of 100%. MS is undervalued at $210, with an intrinsic value of $269 and a margin of safety of 22%. Of the two, DIS has the wider margin of safety.

DIS
Walt Disney Company (The)
$96.19
VS
MS
Morgan Stanley
$210.42

Rewards

DIS
  • ★Free cash flow has grown at a 111.4% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Each dollar of retained earnings has created $6.06 of earning power — management is an exceptional capital allocator.
  • ★Management has timed buybacks well — 2 out of 2 years showed value-accretive repurchases.
MS
  • ★Gross margin of 87.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Morgan Stanley scores 80/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Each dollar of retained earnings has created $3.56 of earning power — management is an exceptional capital allocator.

Risks

DIS
  • ⚠PEG ratio of 2.24 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Altman Z-Score of 1.08 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
MS
  • ⚠Altman Z-Score of 0.29 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
  • ⚠Insiders have sold $5.4M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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DIS
MS
Valuation
$10.08B
Free Cash Flow
N/A
0.00%
FCF Yield
N/A
15.39
Trailing P/E
17.01
12.90
Forward P/E
15.45
Quality & Moat
7.33%
ROIC
3.68%
11.01%
ROE
14.08%
37.16%
Gross Margin
87.64%
2.24
PEG Ratio
1.99
Balance Sheet Safety
0.36
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
2.11
Net Debt / EBITDA
N/A
1.56%
Dividend Yield
2.19%
DIS: 3Ties: 1MS: 5
DISMS

Historical Fundamentals

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DIS

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

MS

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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DIS
$0.00
created per $1 retained over 3 years
Value Destroyer
Σ Retained
$16.56B
Δ Market Cap
+$26.89
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
MS
$6.65
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$20.84B
Δ Market Cap
+$138.59B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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DIS
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $96.19
Fair Value: $254584003146.76
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
MS
21.9% Margin of Safety
Price is 21.9% below estimated fair value
Current Price: $210.42
Fair Value: $269.50
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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DIS

What growth rate is the market pricing in at $96?

-18.7%
Market-Implied Owner Earnings Growth
Standard FCF implies -15.2%

The market implies -18.7% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -15.2%, reflecting heavy growth investment expected to generate future returns.

MS

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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DIS
51/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
MS
80/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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DIS
-2.61
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
MS
-2.09
Possible Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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DIS
Insiders 0.1%Institutions 77.8%Retail & Other 22.2%
No. of Institutional Holders3,833
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
MS
Insiders 24.4%Institutions 63.1%Retail & Other 12.5%
No. of Institutional Holders3,329
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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DIS
0
Buys (3M)
2
Buys (12M)
Total value (12M): $2.11M
CHANG AMY L
Director
$98,791
@ $107.85 · 2026-02-12
GORMAN JAMES P
Director
$2.01M
@ $111.89 · 2025-12-12
MCDONALD CALVIN
Director
$999,994
@ $85.06 · 2024-08-08
Open market purchases · includes direct & indirect ownership · excludes option exercises
MS
0
Buys (3M)
1
Buys (12M)
Total value (12M): $5,630
PETERSON DOUGLAS L
Director
$5,630
@ $156.39 · 2025-10-17
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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DIS
0
Sells (3M)
3
Sells (12M)
Total value (12M): $792,757
COLEMAN SONIA L
Officer
$281,922
@ $114.00 · 2026-01-22
COLEMAN SONIA L
Officer
$277,134
@ $114.00 · 2025-12-24
COLEMAN SONIA L
Officer
$233,701
@ $118.57 · 2025-08-25
WOODFORD BRENT A
Officer
$110,845
@ $110.84 · 2025-05-13
COLEMAN SONIA L
Officer
$74,936
@ $108.76 · 2025-01-22
COLEMAN SONIA L
Officer
$342,766
@ $111.36 · 2024-12-17
WOODFORD BRENT A
Officer
$917,920
@ $114.74 · 2024-12-11
IGER ROBERT A
Chief Executive Officer
$42.67M
@ $114.57 · 2024-11-22
WOODFORD BRENT A
Officer
$568,101
@ $113.62 · 2024-11-20
COLEMAN SONIA L
Officer
$279,772
@ $99.99 · 2024-11-11
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
MS
2
Sells (3M)
14
Sells (12M)
Total value (12M): $64.71M
SCHAPIRO MARY L
Director
$212,055
@ $212.06 · 2026-07-28
PIZZI MICHAEL A
Officer
$5.21M
@ $215.55 · 2026-07-17
GROSSMAN ERIC F
Officer
$2.12M
@ $190.75 · 2026-04-20
SIMKOWITZ DANIEL A
President
$2.78M
@ $189.24 · 2026-04-17
SAPERSTEIN ANDREW MICHAEL
President
$9.74M
@ $188.59 · 2026-04-16
CRAWLEY MANDELL L.
Officer
$3.04M
@ $188.22 · 2026-04-16
SIMKOWITZ DANIEL A
President
$6.02M
@ $182.61 · 2026-01-30
PIZZI MICHAEL A
Officer
$3.69M
@ $184.55 · 2026-01-20
SAPERSTEIN ANDREW MICHAEL
President
$5.57M
@ $183.62 · 2026-01-20
GROSSMAN ERIC F
Officer
$3.97M
@ $184.00 · 2026-01-20
CRAWLEY MANDELL L.
Officer
$1.44M
@ $183.45 · 2026-01-20
YESHAYA SHARON
Chief Financial Officer
$2.94M
@ $185.77 · 2026-01-20
SMITH CHARLES AUBREY III
Officer
$1.55M
@ $182.08 · 2026-01-20
PICK EDWARD N.
Chief Executive Officer
$16.43M
@ $164.34 · 2025-10-31
PIZZI MICHAEL A
Officer
$2.53M
@ $140.62 · 2025-07-17
GROSSMAN ERIC F
Officer
$1.69M
@ $141.12 · 2025-07-17
SMITH CHARLES AUBREY III
Officer
$2.81M
@ $140.30 · 2025-07-17
SIMKOWITZ DANIEL A
President
$4.09M
@ $141.13 · 2025-07-17
SIMKOWITZ DANIEL A
President
$3.70M
@ $127.37 · 2025-05-12
SAPERSTEIN ANDREW MICHAEL
President
$4.80M
@ $120.00 · 2025-05-02
HERZ ROBERT H
Director
$95,459
@ $119.32 · 2025-05-02
GROSSMAN ERIC F
Officer
$1.12M
@ $111.65 · 2025-04-15
CRAWLEY MANDELL L.
Officer
$1.15M
@ $138.06 · 2025-01-22
PIZZI MICHAEL A
Officer
$2.52M
@ $136.92 · 2025-01-21
SAPERSTEIN ANDREW MICHAEL
President
$4.20M
@ $136.43 · 2025-01-21
GROSSMAN ERIC F
Officer
$1.78M
@ $136.20 · 2025-01-21
AKRAM RAJA
Chief Financial Officer
$2.38M
@ $136.01 · 2025-01-21
SIMKOWITZ DANIEL A
President
$5.00M
@ $136.61 · 2025-01-21
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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DIS
FearGreed
😐Neutral(46/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
MS
FearGreed
😐Neutral(57/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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DIS
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (46)
MS
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (57)
View DIS Full AnalysisView MS Full Analysis

Frequently Asked Questions: DIS vs MS

Is Walt Disney Company (The) or Morgan Stanley more undervalued in 2026?▼

Based on our discounted cash flow model, DIS trades at a 100.0% margin of safety (intrinsic value $254584003147 vs. price $96), compared to MS's 21.9% margin of safety (intrinsic $269 vs. $210).

Which stock has a wider economic moat, Walt Disney Company (The) or Morgan Stanley?▼

MS scores 80/100 (Wide moat), while DIS scores 51/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Morgan Stanley in financial distress?▼

MS's Altman Z-Score of 0.3 places it in the Distress zone, signaling elevated bankruptcy risk. DIS scores 1.1 (Distress zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Walt Disney Company (The) or Morgan Stanley?▼

DIS earns 7.3% ROIC versus MS's 3.7%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Walt Disney Company (The)'s or Morgan Stanley's?▼

DIS's dividend earns a safety score of 88/100 (Very Safe), compared to MS's 79/100 (Safe). DIS has raised its dividend for 1 consecutive years.