Charter Communications vs Walt Disney Which Is a Better Investment?

Charter Communications and Walt Disney are two prominent companies in the media and entertainment industry. Charter Communications is a leading provider of cable and internet services, operating primarily in the United States. On the other hand, Walt Disney is a diversified multinational entertainment and media conglomerate known for its film and television production, theme parks, and consumer products. Both companies have shown strong performance in recent years, but face different challenges and opportunities in an ever-changing industry landscape. Investors looking to diversify their portfolio may consider comparing the stocks of Charter Communications and Walt Disney to make informed decisions.

Charter Communications or Walt Disney?

When comparing Charter Communications 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 Charter Communications 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. Charter Communications 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. Charter Communications 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 Charter Communications P/E ratio at 11.82 and Walt Disney's P/E ratio at 41.92. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Charter Communications P/B ratio is 3.92 while Walt Disney's P/B ratio is 2.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Charter Communications has seen a 5-year revenue growth of 0.95%, while Walt Disney's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Charter Communications's ROE at 37.45% 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 $382.32 for Charter Communications and $114.16 for Walt Disney. Over the past year, Charter Communications's prices ranged from $236.08 to $415.27, with a yearly change of 75.90%. 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.