Comparing Starz Acquisition (STRZA) and Walt Disney Company (The) (DIS)

Starz Acquisition (NASDAQ: STRZA) and Walt Disney Company (The) (NYSE:DIS) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Dividends



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

Valuation & Earnings

This table compares Starz Acquisition and Walt Disney Company (The)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Starz Acquisition N/A N/A N/A $1.79 19.51
Walt Disney Company (The) $55.50 billion 2.73 $16.82 billion $5.66 17.37

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

Risk and Volatility

Starz Acquisition has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500. Comparatively, Walt Disney Company (The) has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Starz Acquisition and Walt Disney Company (The), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Starz Acquisition 0 0 1 0 3.00
Walt Disney Company (The) 4 14 14 1 2.36

Starz Acquisition presently has a consensus price target of $36.00, suggesting a potential upside of 3.06%. Walt Disney Company (The) has a consensus price target of $113.76, suggesting a potential upside of 15.71%. Given Walt Disney Company (The)’s higher possible upside, analysts clearly believe Walt Disney Company (The) is more favorable than Starz Acquisition.

Profitability

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

Net Margins Return on Equity Return on Assets
Starz Acquisition -68.21% -14.75% -6.41%
Walt Disney Company (The) 16.22% 19.69% 10.05%

Insider and Institutional Ownership

80.2% of Starz Acquisition shares are owned by institutional investors. Comparatively, 61.4% of Walt Disney Company (The) shares are owned by institutional investors. 8.5% of Starz Acquisition shares are owned by insiders. Comparatively, 0.4% of Walt Disney Company (The) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Walt Disney Company (The) beats Starz Acquisition on 10 of the 14 factors compared between the two stocks.

Starz Acquisition Company Profile

Starz Acquisition LLC, formerly Starz, is an integrated media and entertainment company. The Company provides premium subscription video programming in the United States to cable operators, satellite television providers, telecommunications companies and online video providers. The Company’s segments include Starz Networks and Starz Distribution. The Starz Networks segment provides premium subscription video programming to the United States multichannel video programming distributors (MVPDs), including cable operators (such as Comcast and Time Warner Cable), satellite television providers (such as DIRECTV and DISH Network) and telecommunications companies (such as AT&T and Verizon). The Starz Distribution segment includes the operations of its Anchor Bay Entertainment, Starz Digital and Starz Worldwide Distribution businesses. It also develops, produces and acquires entertainment content and distributes this content to consumers in the United States and throughout the world.

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.

Receive News & Ratings for Starz Acquisition LLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Starz Acquisition LLC and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply