Walt Disney (NASDAQ: LILA) and Liberty Latin America Ltd Class A (NASDAQ:LILA) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Volatility and Risk

Walt Disney has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Liberty Latin America Ltd Class A has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.

Dividends

Walt Disney pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. Liberty Latin America Ltd Class A does not pay a dividend. Walt Disney pays out 29.5% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Walt Disney and Liberty Latin America Ltd Class A’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Walt Disney $55.14 billion 2.95 $8.98 billion $5.70 19.20
Liberty Latin America Ltd Class A $3.59 billion 0.98 -$70.26 million ($0.41) -49.95

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Walt Disney and Liberty Latin America Ltd Class A, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Walt Disney 2 8 12 0 2.45
Liberty Latin America Ltd Class A 1 4 1 0 2.00

Walt Disney presently has a consensus target price of $119.60, suggesting a potential upside of 9.26%. Liberty Latin America Ltd Class A has a consensus target price of $24.25, suggesting a potential upside of 18.41%. Given Liberty Latin America Ltd Class A’s higher probable upside, analysts clearly believe Liberty Latin America Ltd Class A is more favorable than Walt Disney.

Insider & Institutional Ownership

63.1% of Walt Disney shares are owned by institutional investors. Comparatively, 22.2% of Liberty Latin America Ltd Class A shares are owned by institutional investors. 0.4% of Walt Disney shares are owned by insiders. Comparatively, 8.4% of Liberty Latin America Ltd Class A shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Walt Disney and Liberty Latin America Ltd Class A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Walt Disney 20.76% 21.37% 10.45%
Liberty Latin America Ltd Class A N/A N/A N/A

Summary

Walt Disney beats Liberty Latin America Ltd Class A on 12 of the 16 factors compared between the two stocks.

Walt Disney Company Profile

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company's Media Networks segment operates cable programming services under the brand ESPN, Disney, and Freeform; broadcast businesses, which include the ABC TV Network and eight owned television stations; radio businesses consisting of the ESPN Radio network; and the Radio Disney network. It also produces and sells original live-action and animated television programming to first-run syndication and other television markets, as well as subscription video on demand services and in home entertainment formats, such as DVD, Blu-Ray, and electric home video license. 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, Disney Cruise Line, and Adventures by Disney; and manages Disneyland Paris, 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; and sells its products through The Disney Store, shopDisney.com, and shop.Marvel.com, as well as directly to retailers. The company was founded in 1923 and is based in Burbank, California.

Liberty Latin America Ltd Class A Company Profile

Liberty Latin America Ltd. is a holding company, which engages in the provision of telecommunication services. It operates through the following segments: Cable and Wireless Communications Limited (C&W), VTR, Liberty Puerto Rico, and Corporate and Other. The C&W segment offers cloud based integrated communication services, connectivity, and wholesale solutions to carriers and businesses via sub-sea and terrestrial fiber optic cable networks. The VTR segment includes mobile telephony and data services and relies on the radio access network of a third-party wireless network provider to carry its mobile communications traffic. The Liberty Puerto Rico segment comprises video, internet, and fixed-line telephony services. The Corporate and Other segment consists of corporate operations and applicable intersegment eliminations. The company was founded on July 11, 2017 and is headquartered in Denver, CO.

Receive News & Ratings for Walt Disney Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Walt Disney and related companies with MarketBeat.com's FREE daily email newsletter.