Central European Media Enterprises (NASDAQ: CETV) and Walt Disney Company (The) (NYSE:DIS) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitabiliy, earnings, valuation, analyst recommendations and dividends.

Dividends

Walt Disney Company (The) pays an annual dividend of $1.56 per share and has a dividend yield of 1.5%. Central European Media Enterprises does not pay a dividend. Walt Disney Company (The) pays out 27.2% of its earnings in the form of a dividend.

Profitability

This table compares Central European Media Enterprises and Walt Disney Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Central European Media Enterprises 2.82% -18.46% 1.26%
Walt Disney Company (The) 16.63% 19.81% 10.27%

Institutional and Insider Ownership

28.3% of Central European Media Enterprises shares are owned by institutional investors. Comparatively, 62.4% of Walt Disney Company (The) shares are owned by institutional investors. 1.8% of Central European Media Enterprises shares are owned by insiders. Comparatively, 13.0% of Walt Disney Company (The) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Central European Media Enterprises and Walt Disney Company (The)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Central European Media Enterprises $650.66 million 0.93 $162.63 million ($0.10) -42.00
Walt Disney Company (The) $55.54 billion 3.01 $17.10 billion $5.74 18.64

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Central European Media Enterprises and Walt Disney Company (The), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Central European Media Enterprises 0 0 2 0 3.00
Walt Disney Company (The) 4 13 15 0 2.34

Central European Media Enterprises currently has a consensus price target of $3.30, suggesting a potential downside of 21.43%. Walt Disney Company (The) has a consensus price target of $116.52, suggesting a potential upside of 8.92%. Given Walt Disney Company (The)’s higher possible upside, analysts clearly believe Walt Disney Company (The) is more favorable than Central European Media Enterprises.

Risk & Volatility

Central European Media Enterprises has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Walt Disney Company (The) has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Summary

Walt Disney Company (The) beats Central European Media Enterprises on 13 of the 16 factors compared between the two stocks.

About Central European Media Enterprises

Central European Media Enterprises Ltd. (CME Ltd.) is a media and entertainment company operating in Central and Eastern Europe. The Company’s assets are held through a series of Dutch and Curacao holding companies. The Company manages its business on a geographical basis, with six segments: Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic and Slovenia. The Bulgaria segment operated one general entertainment channel, BTV, and five other channels, including BTV CINEMA, BTV COMEDY, RING.BG, BTV ACTION and BTV LADY, as of December 31, 2016. The Croatia segment operated one general entertainment channel, NOVA TV (Croatia), as of December 31, 2016. The Czech Republic segment operated one general entertainment channel, TV NOVA (Czech Republic), as of December 31, 2016. The Romania segment operated one general entertainment channel, PRO TV, as of December 31, 2016. The Slovak Republic segment operated one general entertainment channel, TV MARKIZA, as of December 31, 2016.

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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