Feeling The Movie Frenzy? Invest in The Walt Disney Company (DIS), Dreamworks Animation Skg Inc (DWA)

Page 1 of 2

With the Oscars having just wrapped up I can safely assume that many of you are feeling the movie spirit, and you probably want to check out some of the winners, head to the theater to see what else is out, or find a Redbox to pick something random up to watch. Well, the companies that make the movies you and I watch are, for the most part, publicly traded, and you could grab yourself a slice of the Hollywood pie with one simple investment.

The Walt Disney Company (NYSE:DIS)Lions Gate

Lions Gate Entertainment Corp. (USA) (NYSE:LGF) has been on a tear lately. The company has had some very successful movies out over the past couple of years, including the Twilight series and the Hunger Games movies, of which there are still more to come. The company’s has risen close to 130% over the last five years, and is right around the 50% mark this year alone.

Being that Lions Gate is in the movie business, it comes with some fluctuations in earnings. These companies have to spend money on acquiring the best IPs and then providing the IPs with reasonable budgets to pull off an excellent movie and still make a profit–it’s a tough business. Luckily, Lions Gate has been doing quite well, and while their earnings have jumped around, they’re still making money year after year.

The current P/E at Lions Gate is 74, a number that is obviously on the high side. Earnings are expected to be growing over the next few years though, especially as the company continues to mature their product line.

Disney

The Walt Disney Company (NYSE:DIS) is obviously a lot more diverse than Lions Gate. The company is involved in everything from movies to sports to theme parks, and is the definition of a diversified media conglomerate.

When it comes to movies, you’ll find Disney focusing on the family. The company owns Pixar, Marvel, and now Lucas Film. Those three companies combined create one of the biggest character stables in the entire world.

The Walt Disney Company (NYSE:DIS) won’t provide the types of returns that a company like Lions Gate can because they’re a lot bigger, and a lot more stable. They do, however, pay a dividend. It is currently a yearly dividend that yields 1.4%, which is nothing to scoff at.

Disney has a P/E ratio of 17.5, a low LT debt to equity ratio at 0.49, and an 18.9% pre-tax margin over the five-year average.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!