Global Eagle Entertainment (NASDAQ: ENT) and Walt Disney Company (The) (NYSE:DIS) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitabiliy.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Global Eagle Entertainment and Walt Disney Company (The), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Eagle Entertainment 0 4 1 0 2.20
Walt Disney Company (The) 4 13 15 0 2.34

Global Eagle Entertainment currently has a consensus target price of $10.50, indicating a potential upside of 240.91%. Walt Disney Company (The) has a consensus target price of $116.19, indicating a potential upside of 8.61%. Given Global Eagle Entertainment’s higher probable upside, equities analysts clearly believe Global Eagle Entertainment is more favorable than Walt Disney Company (The).

Insider & Institutional Ownership

94.2% of Global Eagle Entertainment shares are held by institutional investors. Comparatively, 62.4% of Walt Disney Company (The) shares are held by institutional investors. 3.9% of Global Eagle Entertainment shares are held by company insiders. Comparatively, 13.0% of Walt Disney Company (The) shares are held 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

Global Eagle Entertainment has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Walt Disney Company (The) has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Earnings & Valuation

This table compares Global Eagle Entertainment 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
Global Eagle Entertainment $486.23 million 0.54 $31.07 million ($0.34) -9.06
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 Global Eagle Entertainment. Global Eagle Entertainment 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.

Dividends

Walt Disney Company (The) pays an annual dividend of $1.56 per share and has a dividend yield of 1.5%. Global Eagle Entertainment 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 Global Eagle Entertainment and Walt Disney Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Eagle Entertainment N/A N/A N/A
Walt Disney Company (The) 16.63% 19.81% 10.27%

Summary

Walt Disney Company (The) beats Global Eagle Entertainment on 12 of the 15 factors compared between the two stocks.

About Global Eagle Entertainment

Global Eagle Entertainment Inc. is a provider of aircraft connectivity systems, operations solutions and media content to the travel industry. The Company’s segments include Connectivity and Content. Its Connectivity segment provides airline partners and their passengers with Wireless Fidelity (Wi-Fi) connectivity over Ku-band satellite transmissions, and to a lesser extent operations solutions to airline customers. Its Content segment selects, manages and distributes wholly owned and licensed media content, video and music programming, applications, digital advertising solutions and games to over 150 airlines across the world, as well as to maritime and other away-from-home non-theatrical markets. The Company, through its product and services platform, provide airlines with a range of in-flight solutions, including Wi-Fi, movies, television, music, interactive software, as well as portable in-flight entertainment (IFE) solutions, content management services and e-commerce solutions.

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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