Critical Comparison: DTS (DTSI) & World Wrestling Entertainment (NYSE:WWE)

World Wrestling Entertainment (NYSE: WWE) and DTS (NASDAQ:DTSI) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Dividends

World Wrestling Entertainment pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. DTS pays an annual dividend of $0.08 per share and has a dividend yield of 0.2%. World Wrestling Entertainment pays out 154.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DTS pays out -19.0% of its earnings in the form of a dividend.

Profitability

This table compares World Wrestling Entertainment and DTS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
World Wrestling Entertainment 3.29% 13.07% 5.51%
DTS 1.17% 1.04% 0.59%

Earnings & Valuation

This table compares World Wrestling Entertainment and DTS’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
World Wrestling Entertainment $762.15 million 2.11 $81.40 million $0.31 67.42
DTS N/A N/A N/A ($0.42) -101.09

World Wrestling Entertainment has higher revenue and earnings than DTS. DTS is trading at a lower price-to-earnings ratio than World Wrestling Entertainment, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for World Wrestling Entertainment and DTS, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
World Wrestling Entertainment 1 2 6 0 2.56
DTS 0 4 0 0 2.00

World Wrestling Entertainment currently has a consensus target price of $24.43, indicating a potential upside of 16.88%. DTS has a consensus target price of $42.50, indicating a potential upside of 0.09%. Given World Wrestling Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe World Wrestling Entertainment is more favorable than DTS.

Insider and Institutional Ownership

50.1% of World Wrestling Entertainment shares are owned by institutional investors. Comparatively, 98.1% of DTS shares are owned by institutional investors. 49.8% of World Wrestling Entertainment shares are owned by insiders. Comparatively, 11.3% of DTS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

World Wrestling Entertainment has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, DTS has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Summary

World Wrestling Entertainment beats DTS on 10 of the 13 factors compared between the two stocks.

About World Wrestling Entertainment

World Wrestling Entertainment, Inc. (WWE) is an integrated media and entertainment company. The Company’s segments are Network, Television, Home Entertainment, Digital Media, Live Events, Licensing, Venue Merchandise, WWEShop, WWE Studios, and Corporate and Other. The Company is engaged in the production and distribution of content through various channels, including its WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring its brands. Its Network, Television, Home Entertainment and Digital Media are individual segments that comprise the Media Division. Its Live Events, Licensing, Venue Merchandise and WWEShop are individual segments that comprise the Consumer Products Division. Its Network segment consists of subscriptions to WWE Network. The Company’s Television segment consists of television rights fees and advertising.

About DTS

DTS, Inc. is an audio technology solutions provider for high-definition entertainment experiences. The Company’s audio solutions are designed to enable recording, delivery and playback of high-definition audio, and are included by licensee customers around the world into a range of consumer electronics devices, including televisions, personal computers (PCs), smartphones, tablets, digital media players (DMPs), set-top-boxes, soundbars, wireless speakers, video game consoles, Blu-ray Disc players, automotive audio systems, audio/video receivers (AVRs), digital versatile disc (DVD)-based products and home theater systems. In the wireless speakers market, the Company maintains a Play-Fi Certified original design manufacturer (ODM) Program. The Company’s market base includes Blu-ray, Home audio video (AV) and Automotive. The Blu-ray market includes standalone players, gaming devices and disc drives included in PCs.

Receive News & Ratings for World Wrestling Entertainment Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for World Wrestling Entertainment Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply