Carnival vs Walt Disney Which Is Superior?

Carnival Corporation and Walt Disney Company are two well-known companies in the entertainment and travel industries. While Carnival is a major cruise line operator, Walt Disney is famous for its theme parks, movies, and media networks. Both companies have been impacted by the COVID-19 pandemic, with Carnival facing challenges in the cruise industry and Disney dealing with the closure of its theme parks. Investors are closely monitoring how these companies navigate through these difficult times and the potential for growth in the future.

Carnival or Walt Disney?

When comparing Carnival and Walt Disney, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Carnival and Walt Disney.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Carnival has a dividend yield of -%, while Walt Disney has a dividend yield of 0.39%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Carnival reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Walt Disney reports a 5-year dividend growth of 0.00% year and a payout ratio of 27.47%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Carnival P/E ratio at 19.60 and Walt Disney's P/E ratio at 41.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Carnival P/B ratio is 3.57 while Walt Disney's P/B ratio is 2.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Carnival has seen a 5-year revenue growth of -0.34%, while Walt Disney's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Carnival's ROE at 27.41% and Walt Disney's ROE at 4.96%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €21.68 for Carnival and $113.91 for Walt Disney. Over the past year, Carnival's prices ranged from €11.28 to €23.50, with a yearly change of 108.33%. Walt Disney's prices fluctuated between $83.91 and $123.74, with a yearly change of 47.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.