DTS (NASDAQ: DTSI) and World Wrestling Entertainment (NYSE:WWE) are both cyclical consumer goods & services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Dividends

DTS pays an annual dividend of $0.08 per share and has a dividend yield of 0.2%. World Wrestling Entertainment pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. DTS pays out -19.0% of its earnings in the form of a dividend. World Wrestling Entertainment pays out 154.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares DTS and World Wrestling Entertainment’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DTS N/A N/A N/A ($0.42) -101.09
World Wrestling Entertainment $762.15 million 2.11 $81.40 million $0.31 67.42

World Wrestling Entertainment has higher revenue and earnings than DTS. DTS is trading at a lower price-to-earnings ratio than World Wrestling Entertainment, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

98.1% of DTS shares are held by institutional investors. Comparatively, 50.1% of World Wrestling Entertainment shares are held by institutional investors. 11.3% of DTS shares are held by insiders. Comparatively, 49.8% of World Wrestling Entertainment shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

DTS has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, World Wrestling Entertainment has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for DTS and World Wrestling Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DTS 0 4 0 0 2.00
World Wrestling Entertainment 1 2 6 0 2.56

DTS currently has a consensus target price of $42.50, indicating a potential upside of 0.09%. World Wrestling Entertainment has a consensus target price of $24.43, indicating a potential upside of 16.88%. Given World Wrestling Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe World Wrestling Entertainment is more favorable than DTS.

Profitability

This table compares DTS and World Wrestling Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DTS 1.17% 1.04% 0.59%
World Wrestling Entertainment 3.29% 13.07% 5.51%

Summary

World Wrestling Entertainment beats DTS on 10 of the 13 factors compared between the two stocks.

DTS Company Profile

DTS, Inc. is an audio technology solutions provider for high-definition entertainment experiences. The Company’s audio solutions are designed to enable recording, delivery and playback of high-definition audio, and are included by licensee customers around the world into a range of consumer electronics devices, including televisions, personal computers (PCs), smartphones, tablets, digital media players (DMPs), set-top-boxes, soundbars, wireless speakers, video game consoles, Blu-ray Disc players, automotive audio systems, audio/video receivers (AVRs), digital versatile disc (DVD)-based products and home theater systems. In the wireless speakers market, the Company maintains a Play-Fi Certified original design manufacturer (ODM) Program. The Company’s market base includes Blu-ray, Home audio video (AV) and Automotive. The Blu-ray market includes standalone players, gaming devices and disc drives included in PCs.

World Wrestling Entertainment Company Profile

World Wrestling Entertainment, Inc. (WWE) is an integrated media and entertainment company. The Company’s segments are Network, Television, Home Entertainment, Digital Media, Live Events, Licensing, Venue Merchandise, WWEShop, WWE Studios, and Corporate and Other. The Company is engaged in the production and distribution of content through various channels, including its WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring its brands. Its Network, Television, Home Entertainment and Digital Media are individual segments that comprise the Media Division. Its Live Events, Licensing, Venue Merchandise and WWEShop are individual segments that comprise the Consumer Products Division. Its Network segment consists of subscriptions to WWE Network. The Company’s Television segment consists of television rights fees and advertising.

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