World Wrestling Entertainment (NYSE: WWE) and Walt Disney Company (The) (NYSE:DIS) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitabiliy, analyst recommendations, institutional ownership and valuation.

Dividends

World Wrestling Entertainment pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. Walt Disney Company (The) pays an annual dividend of $1.56 per share and has a dividend yield of 1.5%. World Wrestling Entertainment pays out 184.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Walt Disney Company (The) pays out 27.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for World Wrestling Entertainment and Walt Disney Company (The), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
World Wrestling Entertainment 1 1 7 0 2.67
Walt Disney Company (The) 4 12 16 0 2.38

World Wrestling Entertainment presently has a consensus price target of $24.41, suggesting a potential upside of 17.92%. Walt Disney Company (The) has a consensus price target of $116.72, suggesting a potential upside of 10.77%. Given World Wrestling Entertainment’s stronger consensus rating and higher possible upside, equities research analysts plainly believe World Wrestling Entertainment is more favorable than Walt Disney Company (The).

Institutional & Insider Ownership

52.0% of World Wrestling Entertainment shares are owned by institutional investors. Comparatively, 63.7% of Walt Disney Company (The) shares are owned by institutional investors. 49.8% of World Wrestling Entertainment shares are owned by company insiders. Comparatively, 13.0% of Walt Disney Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

World Wrestling Entertainment has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Walt Disney Company (The) has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Profitability

This table compares World Wrestling Entertainment and Walt Disney Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
World Wrestling Entertainment 2.79% 11.35% 5.12%
Walt Disney Company (The) 16.63% 19.81% 10.27%

Earnings and Valuation

This table compares World Wrestling Entertainment and Walt Disney Company (The)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
World Wrestling Entertainment $746.56 million 2.12 $69.74 million $0.26 79.62
Walt Disney Company (The) $55.54 billion 2.97 $17.10 billion $5.74 18.36

Walt Disney Company (The) has higher revenue and earnings than World Wrestling Entertainment. Walt Disney Company (The) is trading at a lower price-to-earnings ratio than World Wrestling Entertainment, indicating that it is currently the more affordable of the two stocks.

Summary

Walt Disney Company (The) beats World Wrestling Entertainment on 11 of the 16 factors compared between the two stocks.

About World Wrestling Entertainment

World Wrestling Entertainment, Inc. (WWE) is an integrated media and entertainment company. The Company’s segments are Network, Television, Home Entertainment, Digital Media, Live Events, Licensing, Venue Merchandise, WWEShop, WWE Studios, and Corporate and Other. The Company is engaged in the production and distribution of content through various channels, including its WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring its brands. Its Network, Television, Home Entertainment and Digital Media are individual segments that comprise the Media Division. Its Live Events, Licensing, Venue Merchandise and WWEShop are individual segments that comprise the Consumer Products Division. Its Network segment consists of subscriptions to WWE Network. The Company’s Television segment consists of television rights fees and advertising.

About Walt Disney Company (The)

The Walt Disney Company is an entertainment company. The Company operates in four business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media. The media networks segment includes cable and broadcast television networks, television production and distribution operations, domestic television stations, and radio networks and stations. Under the Parks and Resorts segment, the Company’s Walt Disney Imagineering unit designs and develops new theme park concepts and attractions, as well as resort properties. The studio entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays. It also develops and publishes games, primarily for mobile platforms, books, magazines and comic books. The Company distributes merchandise directly through retail, online and wholesale businesses. Its cable networks consist of ESPN, the Disney Channels and Freeform.

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