Walt Disney (NYSE:DIS – Get Free Report) and Sphere Entertainment (NYSE:SPHR – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Profitability
This table compares Walt Disney and Sphere Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Walt Disney | 12.80% | 8.90% | 5.07% |
| Sphere Entertainment | 2.16% | -8.84% | -4.60% |
Valuation and Earnings
This table compares Walt Disney and Sphere Entertainment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Walt Disney | $94.43 billion | 1.98 | $12.40 billion | $6.80 | 15.52 |
| Sphere Entertainment | $1.22 billion | 3.30 | $33.40 million | ($0.45) | -253.74 |
Walt Disney has higher revenue and earnings than Sphere Entertainment. Sphere Entertainment is trading at a lower price-to-earnings ratio than Walt Disney, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Walt Disney has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Sphere Entertainment has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.
Institutional and Insider Ownership
65.7% of Walt Disney shares are held by institutional investors. Comparatively, 92.0% of Sphere Entertainment shares are held by institutional investors. 0.2% of Walt Disney shares are held by company insiders. Comparatively, 22.1% of Sphere Entertainment shares are held 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.
Analyst Ratings
This is a summary of current ratings and recommmendations for Walt Disney and Sphere Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Walt Disney | 1 | 6 | 17 | 0 | 2.67 |
| Sphere Entertainment | 1 | 3 | 8 | 0 | 2.58 |
Walt Disney presently has a consensus target price of $135.80, suggesting a potential upside of 28.71%. Sphere Entertainment has a consensus target price of $101.23, suggesting a potential downside of 11.34%. Given Walt Disney’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Walt Disney is more favorable than Sphere Entertainment.
Summary
Walt Disney beats Sphere Entertainment on 10 of the 14 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 Sphere Entertainment
Sphere Entertainment Co. engages in the entertainment business. It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre. The company also operates entertainment dining and nightlife venues markets under the Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan, and Omnia brand names. The company was formerly known as Madison Square Garden Entertainment Corp. and changed its name to Sphere Entertainment Co. in April 2023. Sphere Entertainment Co. was founded in 2006 and is based in New York, New York.
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