Financial Contrast: Walt Disney Company (The) (DIS) versus TiVo Corporation (TIVO)
Walt Disney Company (The) (NYSE: DIS) and TiVo Corporation (NASDAQ:TIVO) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.
Earnings and Valuation
This table compares Walt Disney Company (The) and TiVo Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Walt Disney Company (The)||$55.50 billion||2.85||$16.82 billion||$5.66||18.09|
|TiVo Corporation||$819.79 million||2.64||$259.28 million||$0.30||59.83|
Walt Disney Company (The) has higher revenue and earnings than TiVo Corporation. Walt Disney Company (The) is trading at a lower price-to-earnings ratio than TiVo Corporation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Walt Disney Company (The) has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, TiVo Corporation has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for Walt Disney Company (The) and TiVo Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Walt Disney Company (The)||4||14||15||0||2.33|
Walt Disney Company (The) presently has a consensus price target of $115.29, indicating a potential upside of 12.58%. TiVo Corporation has a consensus price target of $27.60, indicating a potential upside of 53.76%. Given TiVo Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe TiVo Corporation is more favorable than Walt Disney Company (The).
This table compares Walt Disney Company (The) and TiVo Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Walt Disney Company (The)||16.22%||19.69%||10.05%|
Institutional & Insider Ownership
62.3% of Walt Disney Company (The) shares are held by institutional investors. Comparatively, 88.6% of TiVo Corporation shares are held by institutional investors. 0.4% of Walt Disney Company (The) shares are held by company insiders. Comparatively, 3.6% of TiVo Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Walt Disney Company (The) pays an annual dividend of $1.56 per share and has a dividend yield of 1.5%. TiVo Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 4.0%. Walt Disney Company (The) pays out 27.6% of its earnings in the form of a dividend. TiVo Corporation pays out 240.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Walt Disney Company (The) beats TiVo Corporation on 10 of the 16 factors compared between the two stocks.
About Walt Disney Company (The)
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 TiVo Corporation
TiVo Corporation is engaged in offering media and entertainment products. The Company operates through two segments: Intellectual Property Licensing and Product. The Company’s Product segment includes a suite of component technologies that can be integrated into media service provider internally developed platforms or deployed as an integrated TiVo solution. The Company provides a range of intellectual property, cloud-based services and set-top box solutions that enable people to use online video, television, movies and music entertainment, including content discovery through device embedded and cloud-based interactive program guides (IPGs), digital video recorders (DVRs), natural language voice and text search, cloud-based recommendations services and its entertainment metadata (descriptive information, promotional images or other content that describes or relates to television shows, videos, movies, sports, music, books, games or other entertainment content).
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