Universal vs Six Flags Entertainment Which Outperforms?

Universal Studios and Six Flags Entertainment are two of the biggest players in the theme park industry, each offering unique experiences to visitors around the world. Universal Studios, owned by Comcast Corporation, boasts popular attractions based on beloved movie franchises like Harry Potter and Jurassic Park. On the other hand, Six Flags Entertainment is known for its thrill rides and classic amusement park atmosphere. Investors looking to add some excitement to their portfolios may consider comparing the performance of these two entertainment stocks.

Universal or Six Flags Entertainment?

When comparing Universal and Six Flags Entertainment, 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 Universal and Six Flags Entertainment.

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. Universal has a dividend yield of 5.71%, while Six Flags Entertainment has a dividend yield of 4.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Universal reports a 5-year dividend growth of 4.11% year and a payout ratio of 64.59%. On the other hand, Six Flags Entertainment reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Universal P/E ratio at 11.52 and Six Flags Entertainment's P/E ratio at 43.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Universal P/B ratio is 0.99 while Six Flags Entertainment's P/B ratio is -7.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Universal has seen a 5-year revenue growth of 0.29%, while Six Flags Entertainment's is -0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Universal's ROE at 8.62% and Six Flags Entertainment's ROE at -9.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $56.12 for Universal and $31.92 for Six Flags Entertainment. Over the past year, Universal's prices ranged from $45.19 to $67.80, with a yearly change of 50.03%. Six Flags Entertainment's prices fluctuated between $18.29 and $34.06, with a yearly change of 86.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.