Walt Disney Company (The) (NYSE: DIS) and Liberty Media Corporation (NASDAQ:LSXMA) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Valuation and Earnings

This table compares Walt Disney Company (The) and Liberty Media Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Walt Disney Company (The) $55.50 billion 2.70 $16.82 billion $5.66 17.15
Liberty Media Corporation $5.22 billion 0.84 $1.77 billion $1.36 31.29

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

Risk and Volatility

Walt Disney Company (The) has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Liberty Media Corporation has a beta of 2.77, suggesting that its stock price is 177% more volatile than the S&P 500.

Dividends

Walt Disney Company (The) pays an annual dividend of $1.56 per share and has a dividend yield of 1.6%. Liberty Media Corporation does not pay a dividend. Walt Disney Company (The) pays out 27.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for Walt Disney Company (The) and Liberty Media Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Walt Disney Company (The) 4 11 18 0 2.42
Liberty Media Corporation 0 3 4 0 2.57

Walt Disney Company (The) presently has a consensus target price of $114.09, indicating a potential upside of 17.53%. Liberty Media Corporation has a consensus target price of $47.40, indicating a potential upside of 11.37%. Given Walt Disney Company (The)’s higher possible upside, analysts clearly believe Walt Disney Company (The) is more favorable than Liberty Media Corporation.

Insider & Institutional Ownership

61.5% of Walt Disney Company (The) shares are owned by institutional investors. Comparatively, 24.7% of Liberty Media Corporation shares are owned by institutional investors. 0.4% of Walt Disney Company (The) shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Walt Disney Company (The) 16.22% 19.69% 10.05%
Liberty Media Corporation N/A N/A N/A

Summary

Walt Disney Company (The) beats Liberty Media Corporation on 12 of the 16 factors compared between the two stocks.

Walt Disney Company (The) Company Profile

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.

Liberty Media Corporation Company Profile

Liberty Media Corporation owns interests in subsidiaries and other companies, which are engaged in the media and entertainment industries. The Company’s principal businesses and assets include its consolidated subsidiaries Sirius XM Holdings Inc. (SIRIUS XM) and Braves Holdings, LLC (Braves Holdings), and its equity affiliate Live Nation Entertainment, Inc. (Live Nation). The Company’s segments are SIRIUS XM, and Corporate and other. SIRIUS XM provides a subscription-based satellite radio service. Through its subsidiaries and affiliates, the Company principally operates in North America. The Company also owns a portfolio of minority equity investments in publicly traded media companies, including Time Warner, Inc. and Viacom, Inc. SIRIUS XM transmits music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through two satellite radio systems.

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