In the arena of entertainment stocks, IMAX Corporation achieved remarkable milestones in 2025, setting new records for total box office revenue. The company’s ability to generate significant ticket sales, exemplified by the release of "Avatar: Fire and Ash," which ranked as its fifth-largest opening, spotlights its strong presence in the large-format cinema sector. This particular film debuted on 1,703 IMAX screens, marking the widest release in the company's history and contributing to substantial revenue gains.
Financially, IMAX demonstrated solid performance in the third quarter, with revenue rising 17% year-over-year to nearly $107 million. Non-GAAP net income experienced a notable increase of 39%, reaching over $26 million. These figures exceeded consensus analyst projections, signaling positive momentum for the theater technology company. Its market capitalization stood at approximately $2 billion, with its share price fluctuating within a range of $37.43 to $38.01 on the reported day.
Contrastingly, Walt Disney Company has appeared less dynamic to some investors in recent periods, particularly as it navigated challenges before experiencing a recovery phase. Disney’s streaming platform, anchored by Disney+, reached profitability in 2024, marking a significant milestone in its evolving digital strategy. The company’s diversified revenue streams—spanning theme parks, film productions, branded merchandise, and more—contributed to its top-line growth.
In November 2025, Disney released its fiscal year results, revealing a 3% revenue increase over the previous year, totaling over $94 billion. All three major business segments—entertainment, sports, and experiences—posted revenue growth. Furthermore, these segments also reported robust gains in operating income, culminating in a GAAP net profit surge of nearly 58%, reaching $12 billion. On the day noted, Disney’s market capitalization was approximately $203 billion, with its share price between $113.28 and $114.70.
Looking ahead, Disney anticipates further progress in its entertainment segment, with guidance indicating a double-digit percentage increase in operating income for fiscal 2026. Although its sports and experiences segments are expected to grow at a single-digit rate, any upward trajectory in these areas is viewed positively.
When assessing the investment merits between IMAX and Disney, several factors establish Disney as the clear leader. The company's extensive portfolio of intellectual property assets fuels diverse revenue avenues, unlike IMAX, which remains focused on movie-going trends and faces susceptibility to changes in consumer behavior. Disney’s sizable scale and broader market reach provide additional advantages that are difficult to replicate.
Valuation metrics further reinforce Disney’s investment appeal. Despite holding a vast array of assets, Disney trades at attractive multiples, with a price-to-book ratio of 1.84 and a price-to-sales ratio below 2.2. By contrast, IMAX’s valuation metrics appear stretched, with a price-to-book ratio of 5.8 and price-to-sales of 5.5. Additionally, forward price-to-earnings ratios favor Disney, standing at 17 compared to IMAX's 22.
In sum, although IMAX presents an invigorated business trajectory with promising short-term results, it lacks the comprehensive scale and diverse revenue streams of Disney. As a result, Disney stands out as a robust entertainment investment aligned with broader market demands and offers stronger long-term potential. Investors seeking stability and diversified exposure within the entertainment sector are likely to find Disney the preferable option over IMAX.