CBS Corporation (NYSE: CBS) and Walt Disney Company (The) (NYSE:DIS) are both large-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.
This table compares CBS Corporation and Walt Disney Company (The)’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%|
Valuation and Earnings
This table compares CBS Corporation and Walt Disney Company (The)’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CBS Corporation||$13.20 billion||1.77||$3.05 billion||$0.34||171.26|
|Walt Disney Company (The)||$55.50 billion||2.74||$16.82 billion||$5.66||17.41|
Walt Disney Company (The) has higher revenue and earnings than CBS Corporation. Walt Disney Company (The) is trading at a lower price-to-earnings ratio than CBS Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
CBS Corporation has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Walt Disney Company (The) has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.
This is a breakdown of recent recommendations for CBS Corporation and Walt Disney Company (The), as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Walt Disney Company (The)||4||11||18||0||2.42|
CBS Corporation currently has a consensus price target of $73.50, suggesting a potential upside of 26.22%. Walt Disney Company (The) has a consensus price target of $114.12, suggesting a potential upside of 15.84%. Given CBS Corporation’s stronger consensus rating and higher possible upside, equities analysts clearly believe CBS Corporation is more favorable than Walt Disney Company (The).
CBS Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. Walt Disney Company (The) pays an annual dividend of $1.56 per share and has a dividend yield of 1.6%. CBS Corporation pays out 211.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Walt Disney Company (The) pays out 27.6% of its earnings in the form of a dividend. CBS Corporation has increased its dividend for 5 consecutive years. Walt Disney Company (The) is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
75.1% of CBS Corporation shares are held by institutional investors. Comparatively, 61.5% of Walt Disney Company (The) shares are held by institutional investors. 1.7% of CBS Corporation shares are held by company insiders. Comparatively, 0.4% of Walt Disney Company (The) shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Walt Disney Company (The) beats CBS Corporation on 9 of the 17 factors compared between the two stocks.
CBS Corporation Company Profile
CBS Corporation is a mass media company. The Company operates through four segment: Entertainment, Cable Networks, Publishing, Local Media. The Entertainment segment comprises the CBS TV Network; CBS TV Studios; CBS Studios International and CBS TV Distribution; CBS Interactive; CBS Films; and the Company’s digital streaming services, CBS All Access and CBSN. The Cable Networks segment comprises Showtime Networks, which operates its subscription program services, Showtime, The Movie Channel, and Flix. The Publishing segment comprises Simon & Schuster, which publishes and distributes consumer books under imprints such as Simon & Schuster, Pocket Books, Scribner and Gallery Books. The Local Media segment comprises CBS TV Stations, it owns 30 broadcast TV stations; and CBS Local Digital Media. Its businesses span the media and entertainment industries, including the CBS TV Network, cable networks and content production and distribution.
Walt Disney Company (The) Company Profile
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.
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