Walt Disney (NYSE:DIS) and Altice USA (NYSE:ATUS) are both large-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.
Risk & Volatility
Walt Disney has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Altice USA has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
This table compares Walt Disney and Altice USA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for Walt Disney and Altice USA, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Walt Disney currently has a consensus price target of $123.00, suggesting a potential upside of 10.39%. Altice USA has a consensus price target of $24.92, suggesting a potential upside of 38.13%. Given Altice USA’s stronger consensus rating and higher probable upside, analysts plainly believe Altice USA is more favorable than Walt Disney.
Insider and Institutional Ownership
62.9% of Walt Disney shares are held by institutional investors. Comparatively, 41.8% of Altice USA shares are held by institutional investors. 0.4% of Walt Disney shares are held by company insiders. Comparatively, 42.9% of Altice USA shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Walt Disney pays an annual dividend of $3.52 per share and has a dividend yield of 3.2%. Altice USA does not pay a dividend. Walt Disney pays out 49.7% of its earnings in the form of a dividend. Walt Disney has increased its dividend for 2 consecutive years.
Earnings & Valuation
This table compares Walt Disney and Altice USA’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Walt Disney||$59.43 billion||2.79||$12.60 billion||$7.08||15.74|
|Altice USA||$9.33 billion||1.38||$1.52 billion||$0.02||902.00|
Walt Disney has higher revenue and earnings than Altice USA. Walt Disney is trading at a lower price-to-earnings ratio than Altice USA, indicating that it is currently the more affordable of the two stocks.
Walt Disney beats Altice USA on 10 of the 18 factors compared between the two stocks.
About Walt Disney
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company’s Media Networks segment operates cable programming businesses under the ESPN, Disney, and Freeform brands; broadcast businesses, including ABC TV Network and eight owned television stations; and radio businesses. It also produces original live-action and animated television programming to first-run syndication and television markets; and subscription video-on-demand services and in home entertainment formats, as well as operates ESPN+, a direct-to-consumer streaming service providing multi-sports content. Its Parks and Resorts segment owns and operates the Walt Disney World Resort in Florida and the Disneyland Resort in California. This segment also operates Disney Resort & Spa in Hawaii, Disney Vacation Club, Disneyland Paris, Disney Cruise Line, and Adventures by Disney; and manages Hong Kong Disneyland Resort and Shanghai Disney Resort, as well as licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort in Japan. The company’s Studio Entertainment segment produces and acquires live-action and animated motion pictures for distribution in the theatrical, home entertainment, and television markets primarily under the Walt Disney Pictures, Pixar, Marvel, Lucasfilm, and Touchstone banners. This segment also produces stage plays and musical recordings; licenses and produces live entertainment events; and provides visual and audio effects, and other post-production services. Its Consumer Products & Interactive Media segment licenses its trade names, characters, and visual and literary properties; develops and publishes mobile games, books, magazines, and comic books; distributes branded merchandise directly through retail, online, and wholesale businesses; offers Website management and design; and develops and distributes online video content. The company was founded in 1923 and is based in Burbank, California.
About Altice USA
Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States. The company operates in two segments, Cablevision and Cequel. It delivers broadband, pay television, telephony services, Wi-Fi hotspot access, proprietary content, and advertising services to approximately 4.9 million residential and business customers. The company also offers wireless routers and Internet security software; and pay television services, which include delivery of broadcast stations and cable networks, and advanced digital pay television services, such as video-on-demand, high-definition channels, digital video recorder, and pay-per-view. In addition, it provides Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony, managed Wi-Fi, managed desktop and server backup services; managed collaboration services, including audio and Web conferencing; managed services, including business e-mail, hosted private branch exchange, Web space storage, and network security monitoring; data-driven television, digital, and other multi-platform advertising services; and data-driven and audience-based advertising solutions. Further, the company operates local news channels, as well as traffic and weather channels; News12.com, a destination for local news on the Web; and News 12 To Go, a mobile app for phones and tablets. Altice USA, Inc. is headquartered in Long Island City, New York. Altice USA, Inc. operates independently of Altice N.V. as of June 8, 2018.
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