Disney trades at a P/E of 14 versus Salesforce’s 19, with higher earnings yield and stronger streaming income growth.
Disney and Salesforce, both Dow components, are trading significantly below their highs, with Disney down 15.1% year to date at $96.65 and Salesforce off 34.5% at $173.60. Disney’s valuation metrics appear more attractive for income-focused investors, with a P/E of 14 and an earnings yield of 7.15%, compared to Salesforce’s P/E of 19 and earnings yield of 5%.
Salesforce reported $1.2 billion in annual recurring revenue from its Agentforce AI platform, a 205% year-over-year increase, driving 13% revenue growth and a 37% surge in net income. Meanwhile, Disney’s streaming segment saw operating income rise 88%, bolstering its cash flow across parks, streaming, and sports.
Analysts project 32% upside for Disney, positioning it as the preferred dip-buy for retirement portfolios over Salesforce, which was excluded from a recent top AI stock list.