Critical Comparison: Tribune Media (TRBAA) versus Walt Disney Company (The) (DIS)
Tribune Media (OTCMKTS: TRBAA) and Walt Disney Company (The) (NYSE:DIS) are both mid-cap broadcasting – nec companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
This table compares Tribune Media and Walt Disney Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Walt Disney Company (The)||16.29%||19.46%||9.90%|
Insider & Institutional Ownership
61.4% of Walt Disney Company (The) 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Tribune Media and Walt Disney Company (The), as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Walt Disney Company (The)||4||14||15||1||2.38|
Walt Disney Company (The) has a consensus target price of $112.56, indicating a potential upside of 7.43%. Given Walt Disney Company (The)’s higher possible upside, analysts plainly believe Walt Disney Company (The) is more favorable than Tribune Media.
Walt Disney Company (The) pays an annual dividend of $1.56 per share and has a dividend yield of 1.5%. Tribune Media does not pay a dividend. Walt Disney Company (The) pays out 27.4% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Tribune Media and Walt Disney Company (The)’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Walt Disney Company (The)||$55.14 billion||2.93||$9.39 billion||$5.69||18.41|
Walt Disney Company (The) has higher revenue and earnings than Tribune Media. Tribune Media 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.
Risk and Volatility
Tribune Media has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Walt Disney Company (The) has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.
Walt Disney Company (The) beats Tribune Media on 11 of the 13 factors compared between the two stocks.
Tribune Media Company Profile
Tribune Media Company, formerly Tribune Company, is a media and entertainment company engaged in newspaper publishing, television and radio broadcasting and entertainment through its subsidiaries. The Company’s operations are divided into two industry segments: publishing and broadcasting and entertainment. In publishing, the Company’s daily newspapers include the Los Angeles Times, Chicago Tribune, The Baltimore Sun, Sun Sentinel (South Florida), Orlando Sentinel, Hartford Courant, The Morning Call and Daily Press. The Company’s broadcasting group operates 23 television stations, WGN America on national cable and Chicago’s WGN-AM. In February 2014, Sony Corporation sold all of the shares of Gracenote, Inc. to Tribune Media Company. In August 2014, Tribune Media Co completed its spin-off of Tribune Publishing Company.
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.
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