Like most other little girls growing up, I always dreamed about becoming a Disney princess when I was younger. My mother dressed me as Tinkerbell when I was a toddler, and I wore the costume every single day, through November, until my father made me take it off because of the stares from strangers in grocery stores and on the streets. No one could understand why this little girl was wearing a tattered lime green costume around Thanksgiving.
Walt Disney Co (DIS, Financial) has not lost its impact on society. Younger girls nowadays sing along to the "Frozen" soundtrack and beg their mothers to dress them like Princess Elsa. Disney is much more than movies and toys. The company makes sure no one forgets the movies, new or old, by creating rides at the theme parks and even putting some of the characters on cruiselines and at the resorts. Who wouldn't want to be on a ship with Mickey Mouse and Minnie Mouse?
Let's not forget the fact that the company also owns sports channel giant, ESPN. According to a recent article, ESPN actually generates a significant amount of income for the company. Mickey and Minnie Mouse are not expected to carry the company's entire fate on their backs (thank goodness!).
This is why Disney comes in first place when compared to its competitors: Viacom Inc (VIA, Financial), News Corp (NWS, Financial), Vivendi SA (VIVHY, Financial), Madison Square Garden Co (MSG, Financial) and Discovery Communications Inc (DISCA, Financial).
Disney's stock price is currently $93.11 and down by 0.39%. Gurus who own shares in this stock include but are not limited to: Ruane Cunniff (Trades, Portfolio) with 57,374 shares, Mario Gabelli (Trades, Portfolio) with 148,745 shares, Sarah Ketterer (Trades, Portfolio) with 492,400 shares, Ken Fisher (Trades, Portfolio) with 8,427,622 shares, Diamond Hill Capital (Trades, Portfolio) with 2,639,119 shares, Chris Davis (Trades, Portfolio) with 2,679,895 shares and PRIMECAP Management (Trades, Portfolio) with 8,297,091.
As far as insider trade news, Robert W. Matschullat, a director in the company, recently sold 6,000 shares at $89.53.
Below is a chart that indicates the number of insider buys and sells in relation to the price of the stock.
Disney's market value ($ mil) is at $157,192, which is significantly greater than its competitors. Below I have organized where the competitors fall, in relation to Disney.
| Vivendi | $34,256 |
| Viacom | $30,506 |
| Discovery | $15,544 |
| News Corp | $8,835 |
| Madison Square Garden | $5,634 |
Disney's enterprise value and revenue ($ mil) are both significantly greater than its competitors as well.
| Company | Enterprise Value | Revenue |
| Disney | $171,832 | $48,813 |
| Vivendi | $45,692 | $28,019 |
| Viacom | $42,303 | ,$13,783 |
| Discovery | $22,320 | $5,535 |
| News Corp | $6,270 | $8,574 |
| Madison Square Garden | $5,322 | $1,341 |
Disney's P/E ratio in relation to its competitors
P/E ratio = share price / earnings per share (ttm)
P/E ratio = 93.11 / 4.254
P/E ratio = 21.89
Disney's P/E ratio is 21.89 (industry median = 42.90), making it ranked higher than 83% of the other companies in the global media - diversified industry, but it does not rank higher than a couple of its competitors.
News Corp had the highest, at 32.31. Next is Madison Square Garden at 28.66. Viacom and Discovery came close to each other, with Viacom's at 13.67 and Discovery's at 11.81. Last was Vivendi, with a P/E ratio of 7.66
What about the P/B ratio?
Share price: $93.11
Book value per share: $26.19
93.11 / 26.19 = 3.56
P/B ratio = 3.56
Disney's P/B ratio is higher than 67% of the companies in the same competing industry.
Here's a look at some of the P/B ratios of the competitors in the market:
Viacom = 8.1
Madison Square Garden = 3.30
Discovery = 2.68
Vivendi = 1.33
News Corp = 0.71
A glance at the PEG ratio
The PEG ratio is calculated by taking the EBITDA growth rate (5-year avg.) and dividing it by the P/E (NRI) ratio.
Here's Disney's PEG ratio:
PEG = 21.90 / 15.70
PEG = 1.39
Disney's is ranked higher than 94% of the competing companies.
Viacom's is at 1.21, Madison Square Garden's is at 1.04, Discovery's is 0.64. Both News Corp and Vivendi's are at 0.00.
Dividend yield
The dividend yield = most recent full year dividend / current share price.
Let's calculate Disney's:
dividend yield = 0.86 / 93.11
dividend yield = 0.92%
Disney's current dividend yield is close to the 10-year low of 0.79%.
Vivendi has the highest dividend yield of 5.20% out of the competing companies listed.
Viacom's is at 1.70%.
Madison Square Garden, News Corp and Discovery all have dividend yieldsa t 0.00%.
