Analyzing Walt Disney (NYSE:DIS) and United Parks & Resorts (NYSE:PRKS)

United Parks & Resorts (NYSE:PRKS) and Walt Disney (NYSE:DIS) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

65.7% of Walt Disney shares are held by institutional investors. 1.1% of United Parks & Resorts shares are held by company insiders. Comparatively, 0.1% of Walt Disney shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

United Parks & Resorts has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Walt Disney has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Profitability

This table compares United Parks & Resorts and Walt Disney’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Parks & Resorts	13.84%	-88.59%	9.23%
Walt Disney	1.90%	8.37%	4.33%

Earnings & Valuation

This table compares United Parks & Resorts and Walt Disney’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Parks & Resorts	$1.73 billion	1.91	$234.20 million	$3.72	14.19
Walt Disney	$88.90 billion	2.11	$2.35 billion	$0.92	111.99

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for United Parks & Resorts and Walt Disney, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Parks & Resorts	1	2	2	0	2.20
Walt Disney	1	2	23	0	2.85

United Parks & Resorts currently has a consensus target price of $59.80, indicating a potential upside of 13.28%. Walt Disney has a consensus target price of $125.52, indicating a potential upside of 21.83%. Given Walt Disney’s stronger consensus rating and higher probable upside, analysts plainly believe Walt Disney is more favorable than United Parks & Resorts.

Summary

Walt Disney beats United Parks & Resorts on 9 of the 14 factors compared between the two stocks.

About United Parks & Resorts

United Parks & Resorts Inc., together with its subsidiaries, operates as a theme park and entertainment company in the United States. It operates and licenses SeaWorld theme parks in Orlando, Florida; San Antonio, Texas; Abu Dhabi, United Arab Emirates; and San Diego, California, as well as Busch Gardens theme parks in Tampa, Florida, and Williamsburg, Virginia. The company also operates water park attractions in Orlando, Florida; San Antonio, Texas; San Diego, California; Chula Vista, California; Tampa, Florida; and Williamsburg, Virginia. In addition, the company operates a reservations-only theme park in Orlando, Florida and a park in Langhorne, Pennsylvania; and theme park in Chula Vista, California. It operates a portfolio of theme parks under the SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Water Country USA, Adventure Island, and Sesame Place brand name. The company was formerly known as SeaWorld Entertainment, Inc. and changed its name to United Parks & Resorts Inc. in February 2024. SeaWorld Entertainment, Inc. was founded in 1959 and is headquartered in Orlando, Florida.

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.