Head to Head Contrast: MSG Networks (MSGN) vs. Walt Disney (DIS)

MSG Networks (NYSE: MSGN) and Walt Disney (NYSE:DIS) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Volatility & Risk

MSG Networks has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Walt Disney has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Valuation & Earnings

This table compares MSG Networks and Walt Disney’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MSG Networks $675.35 million 2.59 $167.34 million $2.22 10.47
Walt Disney $55.14 billion 2.89 $8.98 billion $5.70 18.83

Walt Disney has higher revenue and earnings than MSG Networks. MSG Networks is trading at a lower price-to-earnings ratio than Walt Disney, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

81.3% of MSG Networks shares are held by institutional investors. Comparatively, 63.3% of Walt Disney shares are held by institutional investors. 18.4% of MSG Networks shares are held by insiders. Comparatively, 0.4% of Walt Disney shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares MSG Networks and Walt Disney’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MSG Networks 41.18% -21.60% 21.29%
Walt Disney 20.16% 21.13% 10.27%

Analyst Recommendations

This is a summary of recent ratings and price targets for MSG Networks and Walt Disney, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MSG Networks 1 3 4 0 2.38
Walt Disney 2 9 13 1 2.52

MSG Networks currently has a consensus price target of $23.60, indicating a potential upside of 1.51%. Walt Disney has a consensus price target of $119.04, indicating a potential upside of 10.92%. Given Walt Disney’s stronger consensus rating and higher possible upside, analysts plainly believe Walt Disney is more favorable than MSG Networks.

Dividends

Walt Disney pays an annual dividend of $1.68 per share and has a dividend yield of 1.6%. MSG Networks does not pay a dividend. Walt Disney pays out 29.5% of its earnings in the form of a dividend.

Summary

Walt Disney beats MSG Networks on 12 of the 17 factors compared between the two stocks.

MSG Networks Company Profile

MSG Networks Inc. engages in the sports production, and content development and distribution businesses in the United States. The company owns and operates MSG Network and MSG+, which are regional sports and entertainment networks. It also operates MSG GO that provides live streaming and video on demand, as well as a Website and social media platforms for its brands. The company was formerly known as The Madison Square Garden Company and changed its name to MSG Networks Inc. in October 2015. The company was founded in 1969 and is based in New York, New York.

Walt Disney Company Profile

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company's Media Networks segment operates cable programming services under the brand ESPN, Disney, and Freeform; broadcast businesses, which include the ABC TV Network and eight owned television stations; radio businesses consisting of the ESPN Radio network; and the Radio Disney network. It also produces and sells original live-action and animated television programming to first-run syndication and other television markets, as well as subscription video on demand services and in home entertainment formats, such as DVD, Blu-Ray, and electric home video license. Its Parks and Resorts segment owns and operates the Walt Disney World Resort in Florida and the Disneyland Resort in California. This segment also operates Disney Resort & Spa in Hawaii, Disney Vacation Club, Disney Cruise Line, and Adventures by Disney; and manages Disneyland Paris, Hong Kong Disneyland Resort, and Shanghai Disney Resort, as well as licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort in Japan. The company's Studio Entertainment segment produces and acquires live-action and animated motion pictures for distribution in the theatrical, home entertainment, and television markets primarily under the Walt Disney Pictures, Pixar, Marvel, Lucasfilm, and Touchstone banners. This segment also produces stage plays and musical recordings; licenses and produces live entertainment events; and provides visual and audio effects, and other post-production services. Its Consumer Products & Interactive Media segment licenses its trade names, characters, and visual and literary properties; develops and publishes mobile games; and sells its products through The Disney Store, shopDisney.com, and shop.Marvel.com, as well as directly to retailers. The company was founded in 1923 and is based in Burbank, California.

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