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

As of 2026-11-01, DIS is fairly valued at $111, with a DCF intrinsic value of $135 and a margin of safety of 18%. MS is undervalued at $184, with an intrinsic value of $314 and a margin of safety of 41%. Of the two, MS has the wider margin of safety.

DIS

The Walt Disney Company

$110.94

Morgan Stanley

$184.30

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.

★Gross margin of 87.3% 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

⚠FCF yield of 5.3% suggests reasonable valuation assuming continued moderate growth.
⚠PEG ratio of 3.61 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 0.29 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
⚠13 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.

Key Valuation Metrics

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DIS

Valuation

$10.08B

Free Cash Flow

N/A

5.26%

FCF Yield

N/A

22.87

Trailing P/E

14.62

14.80

Forward P/E

13.50

Quality & Moat

9.25%

ROIC

3.47%

8.01%

ROE

13.84%

37.59%

Gross Margin

87.31%

3.61

PEG Ratio

1.61

Balance Sheet Safety

0.35

Net Debt / Equity

Net cash

N/A

Interest Coverage

N/A

1.95

Net Debt / EBITDA

N/A

1.35%

Dividend Yield

2.50%

DIS: 1Ties: 1MS: 7

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.

$1 Retained Earnings Test

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DIS

$2.96

created per $1 retained over 3 years

Exceptional Value Creator

Σ Retained

$16.56B

Δ Market Cap

+$49.03B

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

$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

Discounted Cash Flow (DCF) Analysis

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DIS

17.6% Margin of Safety

Price is 17.6% below estimated fair value

Current Price: $110.94

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $134.67

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

41.3% Margin of Safety

Price is 41.3% below estimated fair value

Current Price: $184.30

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $313.71

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 $111?

+6.8%

Market-Implied Owner Earnings Growth

Standard FCF implies +9.6%

The market implies +6.8% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +9.6%, reflecting heavy growth investment expected to generate future returns.

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.

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.

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.

-2.09

Possible Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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DIS

Insiders 0.1%Institutions 78.8%Retail & Other 21.1%

No. of Institutional Holders3,852

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.

Insiders 24.4%Institutions 63.5%Retail & Other 12.1%

No. of Institutional Holders3,458

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

Buys (3M)

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

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

Buys (3M)

Buys (12M)

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

Sells (3M)

Sells (12M)

Total value (12M): $2.41M

WOODFORD BRENT A

Officer

$318,958

@ $111.68 · 2026-10-16

WOODFORD BRENT A

Officer

$387,596

@ $107.13 · 2026-09-01

ROEDER PAUL M

Officer

$382,327

@ $106.32 · 2026-08-19

WOODFORD BRENT A

Officer

$762,234

@ $105.31 · 2026-08-14

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

Sells (3M)

Sells (12M)

Total value (12M): $48.28M

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

CRAWLEY MANDELL L.

Officer

$3.04M

@ $188.22 · 2026-04-16

SAPERSTEIN ANDREW MICHAEL

President

$9.74M

@ $188.59 · 2026-04-16

SIMKOWITZ DANIEL A

President

$6.02M

@ $182.61 · 2026-01-30

YESHAYA SHARON

Chief Financial Officer

$2.94M

@ $185.77 · 2026-01-20

SMITH CHARLES AUBREY III

Officer

$1.55M

@ $182.08 · 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

PIZZI MICHAEL A

Officer

$3.69M

@ $184.55 · 2026-01-20

SAPERSTEIN ANDREW MICHAEL

President

$5.57M

@ $183.62 · 2026-01-20

PICK EDWARD N.

Chief Executive Officer

$16.43M

@ $164.34 · 2025-10-31

SMITH CHARLES AUBREY III

Officer

$2.81M

@ $140.30 · 2025-07-17

GROSSMAN ERIC F

Officer

$1.69M

@ $141.12 · 2025-07-17

SIMKOWITZ DANIEL A

President

$4.09M

@ $141.13 · 2025-07-17

PIZZI MICHAEL A

Officer

$2.53M

@ $140.62 · 2025-07-17

SIMKOWITZ DANIEL A

President

$3.70M

@ $127.37 · 2025-05-12

HERZ ROBERT H

Director

$95,459

@ $119.32 · 2025-05-02

SAPERSTEIN ANDREW MICHAEL

President

$4.80M

@ $120.00 · 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

GROSSMAN ERIC F

Officer

$1.78M

@ $136.20 · 2025-01-21

SIMKOWITZ DANIEL A

President

$5.00M

@ $136.61 · 2025-01-21

AKRAM RAJA

Chief Financial Officer

$2.38M

@ $136.01 · 2025-01-21

PIZZI MICHAEL A

Officer

$2.52M

@ $136.92 · 2025-01-21

SAPERSTEIN ANDREW MICHAEL

President

$4.20M

@ $136.43 · 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

😏Greed(65/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

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.

😐Neutral(49/100)

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

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: Greed (65)

⚪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 (49)

View DIS Full Analysis View MS Full Analysis

Frequently Asked Questions: DIS vs MS

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

Based on our discounted cash flow model, MS trades at a 41.3% margin of safety (intrinsic value $314 vs. price $184), compared to DIS's 17.6% margin of safety (intrinsic $135 vs. $111).

Which stock has a wider economic moat, The Walt Disney Company 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 2.5 (Grey 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, The Walt Disney Company or Morgan Stanley?▼

DIS earns 9.3% ROIC versus MS's 3.5%. 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, The Walt Disney Company'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.