Walt Disney vs Microsoft

Walt Disney and Microsoft are two prominent companies with distinct business models and spheres of influence in the global market. Disney, known for its iconic entertainment empire encompassing theme parks, movies, and television, has experienced fluctuations in stock performance due to the impact of streaming services on its traditional revenue streams. Microsoft, a technology giant, has maintained a steady growth trajectory driven by its dominance in the software, cloud computing, and gaming industries. Understanding the factors influencing the stock performance of these two companies is crucial for investors seeking to make informed investment decisions.

Walt Disney or Microsoft?

When comparing Walt Disney and Microsoft, 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 Microsoft.

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 0.8%, while Microsoft has a dividend yield of 0.72%. 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 11.49%. On the other hand, Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.70%.

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 35.92 and Microsoft's P/E ratio at 35.31. 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 1.71 while Microsoft's P/B ratio is 11.59.

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 Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walt Disney's ROE at 4.78% and Microsoft's ROE at 35.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $93.68 for Walt Disney and $415.26 for Microsoft. Over the past year, Walt Disney's prices ranged from $79.23 to $123.74, with a yearly change of 56.18%. Microsoft's prices fluctuated between $324.39 and $468.35, with a yearly change of 44.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.