TheStreet.com Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.TheStreet.com's stock-rating model downgraded Walt Disney ( DIS) to "hold." The company operates as a diversified entertainment company worldwide. The numbers: Fiscal second-quarter revenue declined 7.2% from a year earlier to $8.1 billion as net income fell 46% to $613 million and earnings per share dropped 43% to 33 cents. Operating margin fell from 22% to 16% and net margin dropped from 13% to 7.6%. A debt-to-equity ratio of 0.4 indicates a modest debt load. But a quick ratio of 0.8 reflects less-than-ideal liquidity. The stock: Disney is down 1% this year, keeping pace with the S&P 500 Index. The stock trades at a low price-to-earnings ratio of 12 and offers a lackluster 1.6% dividend yield. The model upgraded PSS World Medical ( PSSI) to "buy." The company distributes medical products, equipment and billing services to health care providers in the U.S. The numbers: Fiscal fourth-quarter revenue decreased 4.9% to $469 million as net income fell 20% to $16 million and earnings per share dropped 16% to 26 cents. Operating margin fell from 6% to 5.7% as net margin fell from 3.9% to 3.3%. The company's cash balance has surged 338% since the year-ago quarter and stands strong at $92 million. A debt-to-equity ratio of 0.8 indicates conservative leverage. The stock: PSS World Medical is down 7% this year, underperforming the Dow Jones Industrial Average and the S&P 500. The stock trades at an expensive price-to-earnings ratio of 18 and doesn't pay dividends. The model upgraded SmartPros ( SPRO) to "buy." The company provides training and seminars for accountants, lawyers and finance professionals.