Walt Disney (NYSE:DIS) & Cineverse (NASDAQ:CNVS) Head to Head Review

Walt Disney (NYSE:DIS) and Cineverse (NASDAQ:CNVS) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Institutional and Insider Ownership

65.7% of Walt Disney shares are held by institutional investors. Comparatively, 8.2% of Cineverse shares are held by institutional investors. 0.2% of Walt Disney shares are held by insiders. Comparatively, 14.7% of Cineverse shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Walt Disney and Cineverse”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Walt Disney	$91.36 billion	2.41	$4.97 billion	$4.89	25.03
Cineverse	$49.13 million	1.56	-$21.41 million	($1.05)	-4.57

Walt Disney has higher revenue and earnings than Cineverse. Cineverse is trading at a lower price-to-earnings ratio than Walt Disney, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Walt Disney and Cineverse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Walt Disney	9.47%	9.99%	5.41%
Cineverse	-16.52%	7.33%	3.03%

Risk and Volatility

Walt Disney has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Cineverse has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Walt Disney and Cineverse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Walt Disney	0	6	17	2	2.84
Cineverse	0	0	2	0	3.00

Walt Disney presently has a consensus target price of $124.79, suggesting a potential upside of 1.97%. Cineverse has a consensus target price of $7.25, suggesting a potential upside of 51.04%. Given Cineverse’s stronger consensus rating and higher probable upside, analysts clearly believe Cineverse is more favorable than Walt Disney.

Summary

Walt Disney beats Cineverse on 11 of the 15 factors compared between the two stocks.

About Walt Disney

The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television video streaming content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the ABC Signature, Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners. It also offers direct-to-consumer streaming services through Disney+, Disney+ Hotstar, Hulu, and Star+; sports-related entertainment services through ESPN, ESPN on ABC, ESPN+ DTC, and Star; sale/licensing of film and episodic content to third-party television and VOD services; theatrical, home entertainment, and music distribution services; DVD and Blu-ray discs, electronic home video licenses, and VOD rental services; staging and licensing of live entertainment events; and post-production services. In addition, the company operates theme parks and resorts comprising Walt Disney World Resort, Disneyland Resort, Disneyland Paris, Hong Kong Disneyland Resort, Shanghai Disney Resort, Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, and Adventures by Disney, as well as Aulani, a Disney resort and spa in Hawaii. It also licenses its intellectual property to a third party for operations of the Tokyo Disney Resort; licenses trade names, characters, visual, literary, and other IP for use on merchandise, published materials, and games; operates a direct-to-home satellite distribution platform; sells branded merchandise through retail, online, and wholesale businesses; and develops and publishes books, comic books, and magazines. The company was founded in 1923 and is based in Burbank, California.

About Cineverse

Cineverse Corp. operates as a streaming technology and entertainment company. The company operates in two segments, Cinema Equipment, and Content and Entertainment. It owns and operates streaming channels, through its proprietary technology platform. The company also delivers curated content through subscription video on demand (SVOD), dedicated ad-supported (AVOD), and ad-supported streaming linear (FAST) channels, as well as social video streaming services and audio podcasts; operates OTT streaming entertainment channels; and offers monitoring, billing, collection, and verification services. It entertains consumers worldwide by providing premium feature film and television programs, enthusiast streaming channels, and technology services. The company was formerly known as Cinedigm Corp. and changed its name to Cineverse Corp. in May 2023. Cineverse Corp. was incorporated in 2000 and is based in New York, New York.