Walt Disney (NYSE:DIS – Get Free Report) and Sound Group (NASDAQ:SOGP – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.
Institutional and Insider Ownership
65.7% of Walt Disney shares are held by institutional investors. Comparatively, 1.6% of Sound Group shares are held by institutional investors. 0.2% of Walt Disney shares are held by insiders. Comparatively, 25.2% of Sound Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Walt Disney and Sound Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Walt Disney | $94.42 billion | 1.91 | $12.40 billion | $4.85 | 21.52 |
| Sound Group | $443.69 million | 0.08 | $32.39 million | ($1.21) | -9.86 |
Walt Disney has higher revenue and earnings than Sound Group. Sound Group is trading at a lower price-to-earnings ratio than Walt Disney, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Walt Disney has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Sound Group has a beta of 2.48, suggesting that its share price is 148% more volatile than the S&P 500.
Profitability
This table compares Walt Disney and Sound Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Walt Disney | 8.70% | 9.90% | 5.63% |
| Sound Group | N/A | N/A | N/A |
Analyst Ratings
This is a summary of recent recommendations and price targets for Walt Disney and Sound Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Walt Disney | 1 | 3 | 16 | 1 | 2.81 |
| Sound Group | 0 | 1 | 0 | 0 | 2.00 |
Walt Disney presently has a consensus target price of $127.61, suggesting a potential upside of 22.28%. Given Walt Disney’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Walt Disney is more favorable than Sound Group.
Summary
Walt Disney beats Sound Group on 13 of the 15 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 Sound Group
Sound Group Inc. operates as an audio-centric social and entertainment company. It focuses on building audio platform to connect and communicate. The company, through its product portfolio and in-house technologies, caters to user interest in audio entertainment and social networking. The company was formerly known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc. was founded in 2010 and is based in Singapore.
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