Comparing Kingsoft (OTCMKTS:KSFTF) & Walt Disney (NYSE:DIS)

Kingsoft (OTCMKTS:KSFTF) and Walt Disney (NYSE:DIS) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Analyst Ratings

This is a breakdown of recent ratings for Kingsoft and Walt Disney, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingsoft	1	0	0	0	1.00
Walt Disney	1	5	17	1	2.75

Walt Disney has a consensus price target of $127.59, suggesting a potential upside of 29.95%. Given Walt Disney’s stronger consensus rating and higher probable upside, analysts plainly believe Walt Disney is more favorable than Kingsoft.

Institutional and Insider Ownership

6.3% of Kingsoft shares are held by institutional investors. Comparatively, 65.7% of Walt Disney shares are held by institutional investors. 0.2% of Walt Disney shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Kingsoft and Walt Disney”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingsoft	N/A	N/A	N/A	$0.56	5.80
Walt Disney	$94.42 billion	1.81	$12.40 billion	$6.26	15.68

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kingsoft	N/A	N/A	N/A
Walt Disney	11.54%	8.92%	5.10%

Dividends

Kingsoft pays an annual dividend of $0.10 per share and has a dividend yield of 3.0%. Walt Disney pays an annual dividend of $1.50 per share and has a dividend yield of 1.5%. Kingsoft pays out 17.2% of its earnings in the form of a dividend. Walt Disney pays out 24.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kingsoft is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Walt Disney beats Kingsoft on 12 of the 14 factors compared between the two stocks.

About Kingsoft

Kingsoft Corporation Limited engages in the entertainment and office software and services businesses in Mainland China, Hong Kong, and internationally. It operates in two segments, Office Software and Services, and Entertainment Software and Others. The company is involved in the research and development, operation, and distribution of games; the provision of PC games and mobile games services; and design, research and development, sale, and marketing of office software products and services of WPS Office. It also engages in the research and development of online games; marketing and operation of SMS, and wireless service of online games and application software; research and development, operation, and sale of office application software; marketing and operation of entertainment software products; and research, development, and distribution of consumer application software. Kingsoft Corporation Limited was founded in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.

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.