Grupo Televisa SAB (NYSE: TV) and Walt Disney (NYSE:DIS) are both large-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.
Volatility and Risk
Grupo Televisa SAB has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Walt Disney has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
This table compares Grupo Televisa SAB and Walt Disney’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Grupo Televisa SAB||$5.17 billion||2.13||$199.46 million||$0.41||46.90|
|Walt Disney||$55.14 billion||2.91||$8.98 billion||$7.05||15.11|
Walt Disney has higher revenue and earnings than Grupo Televisa SAB. Walt Disney is trading at a lower price-to-earnings ratio than Grupo Televisa SAB, indicating that it is currently the more affordable of the two stocks.
This table compares Grupo Televisa SAB and Walt Disney’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Grupo Televisa SAB||4.85%||4.62%||1.55%|
Grupo Televisa SAB pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Walt Disney pays an annual dividend of $1.68 per share and has a dividend yield of 1.6%. Grupo Televisa SAB pays out 19.5% of its earnings in the form of a dividend. Walt Disney pays out 23.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Insider and Institutional Ownership
51.4% of Grupo Televisa SAB shares are held by institutional investors. Comparatively, 61.1% of Walt Disney shares are held by institutional investors. 0.4% of Walt Disney shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent recommendations and price targets for Grupo Televisa SAB and Walt Disney, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Grupo Televisa SAB||0||3||2||0||2.40|
Grupo Televisa SAB presently has a consensus target price of $26.00, indicating a potential upside of 35.21%. Walt Disney has a consensus target price of $118.46, indicating a potential upside of 11.20%. Given Grupo Televisa SAB’s higher probable upside, analysts clearly believe Grupo Televisa SAB is more favorable than Walt Disney.
Walt Disney beats Grupo Televisa SAB on 14 of the 17 factors compared between the two stocks.
About Grupo Televisa SAB
Grupo Televisa, S.A.B. is a media company in the international entertainment business. The Company operates in four business segments: Content, Sky, Telecommunications, and Other Businesses. It operates four broadcast channels in Mexico City and has affiliated stations throughout the country. It produces pay-television channels with national and international feeds, throughout Latin America, the United States, Canada, Europe and Asia Pacific. It exports its programs and formats to television networks around the world. It is also a Spanish-language magazine publisher. Its pay-television channels include three music, six movie, seven variety and entertainment channels and two sports channels. Its programs include telenovelas, newscasts, situation comedies, game shows, reality shows, children’s programs, comedy and variety programs, musical and cultural events, movies and educational programming. Its programming also includes broadcasts of special events and sports events in Mexico.
About Walt Disney
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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