Walt Disney vs Carnival Which Outperforms?

Walt Disney and Carnival are two giants in the entertainment and tourism industries, but they operate in very different sectors. Walt Disney is known for its iconic theme parks, hit movies, and popular TV channels, while Carnival is one of the largest cruise ship operators in the world. Both companies have faced challenges in recent years, with Disney's theme parks struggling due to the pandemic and Carnival dealing with negative publicity from past incidents. Investors looking to diversify their portfolios may consider comparing the performance of Walt Disney and Carnival stocks to make informed decisions.

Walt Disney or Carnival?

When comparing Walt Disney and Carnival, 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 Walt Disney and Carnival.

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. Walt Disney has a dividend yield of 0.65%, while Carnival has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Walt Disney reports a 5-year dividend growth of 0.00% year and a payout ratio of 11.04%. On the other hand, Carnival 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 Walt Disney P/E ratio at 41.99 and Carnival's P/E ratio at 18.55. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Walt Disney P/B ratio is 2.07 while Carnival's P/B ratio is 3.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Walt Disney has seen a 5-year revenue growth of 0.23%, while Carnival's is -0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walt Disney's ROE at 4.96% and Carnival's ROE at 27.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $110.25 for Walt Disney and €20.64 for Carnival. Over the past year, Walt Disney's prices ranged from $83.91 to $123.74, with a yearly change of 47.47%. Carnival's prices fluctuated between €11.28 and €21.32, with a yearly change of 89.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.