Reviewing Liberty Media Corporation (LSXMA) & Walt Disney Company (The) (DIS)

Liberty Media Corporation (NASDAQ: LSXMA) and Walt Disney Company (The) (NYSE:DIS) are both large-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Volatility & Risk

Liberty Media Corporation has a beta of 2.77, meaning that its share price is 177% more volatile than the S&P 500. Comparatively, Walt Disney Company (The) has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Liberty Media Corporation and Walt Disney Company (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Media Corporation 0 3 4 0 2.57
Walt Disney Company (The) 4 11 18 0 2.42

Liberty Media Corporation presently has a consensus target price of $47.40, suggesting a potential upside of 12.11%. Walt Disney Company (The) has a consensus target price of $114.12, suggesting a potential upside of 15.84%. Given Walt Disney Company (The)’s higher probable upside, analysts clearly believe Walt Disney Company (The) is more favorable than Liberty Media Corporation.

Profitability

This table compares Liberty Media Corporation and Walt Disney Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Media Corporation N/A N/A N/A
Walt Disney Company (The) 16.22% 19.69% 10.05%

Valuation and Earnings

This table compares Liberty Media 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
Liberty Media Corporation $5.22 billion 0.83 $1.77 billion $1.36 31.09
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 Liberty Media Corporation. Walt Disney Company (The) is trading at a lower price-to-earnings ratio than Liberty Media Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Walt Disney Company (The) pays an annual dividend of $1.56 per share and has a dividend yield of 1.6%. Liberty Media Corporation does not pay a dividend. Walt Disney Company (The) pays out 27.6% of its earnings in the form of a dividend.

Insider & Institutional Ownership

24.7% of Liberty Media Corporation shares are owned by institutional investors. Comparatively, 61.5% of Walt Disney Company (The) shares are owned by institutional investors. 0.4% of Walt Disney Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Walt Disney Company (The) beats Liberty Media Corporation on 12 of the 16 factors compared between the two stocks.

Liberty Media Corporation Company Profile

Liberty Media Corporation owns interests in subsidiaries and other companies, which are engaged in the media and entertainment industries. The Company’s principal businesses and assets include its consolidated subsidiaries Sirius XM Holdings Inc. (SIRIUS XM) and Braves Holdings, LLC (Braves Holdings), and its equity affiliate Live Nation Entertainment, Inc. (Live Nation). The Company’s segments are SIRIUS XM, and Corporate and other. SIRIUS XM provides a subscription-based satellite radio service. Through its subsidiaries and affiliates, the Company principally operates in North America. The Company also owns a portfolio of minority equity investments in publicly traded media companies, including Time Warner, Inc. and Viacom, Inc. SIRIUS XM transmits music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through two satellite radio systems.

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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