Universal vs Walt Disney Which Is More Promising?

Universal and Walt Disney are two giants in the entertainment industry, both known for their iconic characters, theme parks, and blockbuster movies. Universal, owned by Comcast, is a diverse media conglomerate with investments in film, television, and theme parks. On the other hand, Walt Disney is a global powerhouse with a vast portfolio of beloved franchises and properties. Investors often compare the two stocks, weighing the strengths and weaknesses of each company in the ever-changing landscape of entertainment.

Universal or Walt Disney?

When comparing Universal 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 Universal 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. Universal has a dividend yield of 5.7%, 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. Universal reports a 5-year dividend growth of 4.11% year and a payout ratio of 64.59%. 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 Universal P/E ratio at 11.54 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. Universal P/B ratio is 0.99 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, Universal has seen a 5-year revenue growth of 0.29%, while Walt Disney's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Universal's ROE at 8.62% 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 $55.58 for Universal and $113.30 for Walt Disney. Over the past year, Universal's prices ranged from $45.19 to $67.80, with a yearly change of 50.03%. 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.