The Walt Disney Company (DIS), Viacom, Inc. (VIAB): Should You Buy This Media Conglomerate?

Going forward, the picture remains the same. Discovery Communications Inc. (NASDAQ:DISCA) trades for 20 times forward earnings, a 25% premium to the 16 forward P/E multiple Disney holds.

And, Discovery Communications Inc. (NASDAQ:DISCA) does not pay a dividend, so shareholders aren’t receiving future downside protection that regular income can provide. Disney, meanwhile, yields more than 1% at recent prices.

In the end, The Walt Disney Company (NYSE:DIS) is simply the leader of the industry. The company’s growth numbers might not leap off the page for potential investors, but that’s to be expected from a company as large and mature as Disney.

Practically speaking, Disney is still growing at satisfactory rates and owns a slew of extremely valuable assets that is hard to match. Viacom, Inc. (NASDAQ:VIAB) and Discovery Communications Inc. (NASDAQ:DISCA) are both strong companies and highly profitable businesses, and their own investors will likely do well in the future.

However, there’s no matching The Walt Disney Company (NYSE:DIS)’s blend of juggernaut brands. For long-term investors, Disney is the best bet among the diversified entertainment stocks.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney.

The article Should You Buy This Media Conglomerate? originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.