Comcast vs Walt Disney Which Is a Better Investment?

Comcast and Walt Disney are two of the leading media and entertainment companies in the world, each with a rich history and diverse portfolio of assets. Both companies have a strong presence in television, film, theme parks, and streaming services. However, they have different strategies and approaches to growth. Comcast is known for its focus on cable and broadband services, while Disney is recognized for its iconic brands and global reach. Investors often compare the performance of these two stocks to determine which may be a better long-term investment.

Comcast or Walt Disney?

When comparing Comcast 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 Comcast 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. Comcast has a dividend yield of 3.06%, while Walt Disney has a dividend yield of 0.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Comcast reports a 5-year dividend growth of 0.00% year and a payout ratio of 32.74%. 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 Comcast P/E ratio at 10.50 and Walt Disney's P/E ratio at 41.35. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Comcast P/B ratio is 1.80 while Walt Disney's P/B ratio is 2.04.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Comcast has seen a 5-year revenue growth of 0.41%, while Walt Disney's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Comcast's ROE at 17.56% 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 $60.75 for Comcast and $113.30 for Walt Disney. Over the past year, Comcast's prices ranged from $53.54 to $66.80, with a yearly change of 24.77%. 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.