Contrasting Walt Disney (NYSE:DIS) & Belo (BLC)

Walt Disney (NYSE: DIS) and Belo (NYSE:BLC) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Earnings and Valuation

This table compares Walt Disney and Belo’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Walt Disney $55.14 billion 2.94 $8.98 billion $5.69 18.89
Belo N/A N/A N/A $0.88 N/A

Walt Disney has higher revenue and earnings than Belo. Belo is trading at a lower price-to-earnings ratio than Walt Disney, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

61.5% of Walt Disney shares are owned by institutional investors. 0.4% of Walt Disney shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Walt Disney and Belo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Walt Disney 16.29% 19.66% 9.80%
Belo N/A N/A N/A

Dividends

Walt Disney pays an annual dividend of $1.68 per share and has a dividend yield of 1.6%. Belo does not pay a dividend. Walt Disney pays out 29.5% of its earnings in the form of a dividend.

Volatility and Risk

Walt Disney has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Belo has a beta of 3.11, suggesting that its share price is 211% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Walt Disney and Belo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Walt Disney 3 13 16 0 2.41
Belo 0 0 0 0 N/A

Walt Disney currently has a consensus target price of $112.96, indicating a potential upside of 5.07%.

Summary

Walt Disney beats Belo on 9 of the 11 factors compared between the two stocks.

About Walt Disney

The Walt Disney Company is an entertainment company. The Company operates in four business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media. The media networks segment includes cable and broadcast television networks, television production and distribution operations, domestic television stations, and radio networks and stations. Under the Parks and Resorts segment, the Company’s Walt Disney Imagineering unit designs and develops new theme park concepts and attractions, as well as resort properties. The studio entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays. It also develops and publishes games, primarily for mobile platforms, books, magazines and comic books. The Company distributes merchandise directly through retail, online and wholesale businesses. Its cable networks consist of ESPN, the Disney Channels and Freeform.

About Belo

Belo Corp. (Belo) is a television company. The Company owns 20 television stations, including ABC, CBS, NBC, FOX, CW and MyNetwork TV (MNTV) affiliates, and their associated websites, in 15 markets across the United States. The Company also has three local and two regional news channels. Belo also has a services agreement with the owner and operator of KFWD-TV, licensed to Fort Worth, Texas. Six of the Company’s stations are located in four metropolitan areas in the United States: ABC affiliate WFAA-TV in Dallas/Fort Worth; CBS affiliate KHOU-TV in Houston; NBC affiliate KING-TV and independent KONG-TV in Seattle/Tacoma, and Independent KTVK and The CW Network (CW) affiliate KASW-TV in Phoenix. Belo’s television stations have been recognized with numerous local, state and national awards for news coverage and community service. In December 2013, Gannett Co Inc announced that it has completed the acquisition of Belo Corp.

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