Microsoft vs Walt Disney Which Offers More Value?

Microsoft and Walt Disney are two powerhouse companies with a significant presence in different industries - technology and entertainment. Microsoft, known for its software products and cloud services, has shown consistent growth and innovation in recent years. On the other hand, Walt Disney, a media and entertainment conglomerate, has a strong portfolio of iconic brands and franchises that resonate with audiences worldwide. Both companies have seen fluctuations in their stock prices due to various factors, making them intriguing options for investors to consider.

Microsoft or Walt Disney?

When comparing Microsoft 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 Microsoft 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. Microsoft has a dividend yield of 0.69%, 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. Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.63%. 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 Microsoft P/E ratio at 36.63 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. Microsoft P/B ratio is 11.52 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, Microsoft has seen a 5-year revenue growth of 0.99%, while Walt Disney's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Microsoft's ROE at 34.56% 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 $440.50 for Microsoft and $113.91 for Walt Disney. Over the past year, Microsoft's prices ranged from $364.13 to $468.35, with a yearly change of 28.62%. 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.