Walt Disney (NYSE:DIS – Get Free Report) and Live Nation Entertainment (NYSE:LYV – Get Free Report) are both large-cap communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.
Earnings & Valuation
This table compares Walt Disney and Live Nation Entertainment”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Walt Disney | $94.42 billion | 1.92 | $12.40 billion | $4.85 | 21.63 |
| Live Nation Entertainment | $25.20 billion | 1.69 | -$54.83 million | ($1.13) | -159.76 |
Institutional & Insider Ownership
65.7% of Walt Disney shares are owned by institutional investors. Comparatively, 74.5% of Live Nation Entertainment shares are owned by institutional investors. 0.2% of Walt Disney shares are owned by insiders. Comparatively, 2.9% of Live Nation Entertainment 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.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Walt Disney and Live Nation Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Walt Disney | 1 | 5 | 18 | 1 | 2.76 |
| Live Nation Entertainment | 2 | 2 | 20 | 0 | 2.75 |
Walt Disney currently has a consensus target price of $128.61, indicating a potential upside of 22.58%. Live Nation Entertainment has a consensus target price of $197.19, indicating a potential upside of 9.23%. Given Walt Disney’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Walt Disney is more favorable than Live Nation Entertainment.
Risk and Volatility
Walt Disney has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Live Nation Entertainment has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.
Profitability
This table compares Walt Disney and Live Nation Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Walt Disney | 8.70% | 9.90% | 5.63% |
| Live Nation Entertainment | 0.34% | 54.61% | 1.78% |
Summary
Walt Disney beats Live Nation Entertainment on 11 of the 15 factors compared between the two stocks.
About Walt Disney
The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television video streaming content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the ABC Signature, Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners. It also offers direct-to-consumer streaming services through Disney+, Disney+ Hotstar, Hulu, and Star+; sports-related entertainment services through ESPN, ESPN on ABC, ESPN+ DTC, and Star; sale/licensing of film and episodic content to third-party television and VOD services; theatrical, home entertainment, and music distribution services; DVD and Blu-ray discs, electronic home video licenses, and VOD rental services; staging and licensing of live entertainment events; and post-production services. In addition, the company operates theme parks and resorts comprising Walt Disney World Resort, Disneyland Resort, Disneyland Paris, Hong Kong Disneyland Resort, Shanghai Disney Resort, Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, and Adventures by Disney, as well as Aulani, a Disney resort and spa in Hawaii. It also licenses its intellectual property to a third party for operations of the Tokyo Disney Resort; licenses trade names, characters, visual, literary, and other IP for use on merchandise, published materials, and games; operates a direct-to-home satellite distribution platform; sells branded merchandise through retail, online, and wholesale businesses; and develops and publishes books, comic books, and magazines. The company was founded in 1923 and is based in Burbank, California.
About Live Nation Entertainment
Live Nation Entertainment, Inc. operates as a live entertainment company worldwide. It operates through Concerts, Ticketing, and Sponsorship & Advertising segments. The Concerts segment promotes live music events in its owned or operated venues, and in rented third-party venues. This segment operates and manages music venues; produces music festivals; creates and streams associated content; and offers management and other services to artists. The Ticketing segment manages the ticketing operations, including the provision of ticketing software and services to clients and consumers with marketplace for tickets and event information through mobile apps, other websites, retail outlets, and its primary websites, such as livenation.com and ticketmaster.com; and provides ticket resale services. This segment sells tickets for its events and third-party clients in various live event categories. This segment offers ticketing services for arenas, stadiums, amphitheaters, music clubs, concert promoters, professional sports franchises and leagues, college sports teams, performing arts venues, museums, and theaters. The Sponsorship & Advertising segment sells international, national, and local sponsorships and placement of advertising, including signage, online, and promotional programs; rich media offering that comprises advertising related with live streaming and music-related content; and ads across its distribution network of venues, events, and websites. This segment also manages the development of strategic sponsorship programs, as well as develops, books, and produces custom events or programs for specific brands. It owns, operates, or leases entertainment venues. The company was formerly known as Live Nation, Inc. and changed its name to Live Nation Entertainment, Inc. in January 2010. Live Nation Entertainment, Inc. was incorporated in 2005 and is headquartered in Beverly Hills, California.
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