Mutual Fund Options- Disney Stock Most Promising

TO:                         Kathryn Delahanty

FROM:                  Taylor Steinberg

Date:                         4/30/14

Subject:                 Mutual Fund Options- Disney Stock Most Promising

Based on a financial analysis performed on Walt Disney and their most significant competitor, Time Warner, it has been concluded that Walt Disney Company is the best choice for the mutual fund. Included below are the findings of this analysis. The bottom line is that investors want return on investment, and Disney’s stock is the most promising stock for return on investment as well as stability in price.

Competition

When looking for Disney’s number one competitor, identifying the industry in which the company is competing is the best way to start. Walt Disney Company is part of the media conglomerate industry with some of the biggest company names including Viacom, Comcast, Time Warner, CBS Corporation and Sony. Time Warner is Disney’s biggest competitor due to the fact that they compete in all ten of the sub-industries that Disney does. The sub-industries include movie production studios, theme parks, television networks, cable companies etc. This is the main reason for comparing Time Warner to Disney. The second basis of comparison is the fact that Time Warner holds the second largest percent of the market share after Disney.

One-Year Snapshot

Disney Stock From April 29th 2013- April 29th 2014[pic 1]

Current Price: $78.64                                                                (thewaltdisneycompany.com)

P/E Ratio: $21.62

EPS: $3.74

Market Cap: 137.78 Billion                                                    

Time Warner as of April 29th 2013- April 29th 2014[pic 2]

Current Price: $64.74                                                                    (http://finance.yahoo.com)

P/E Ratio: 17.20

EPS: 3.92

Market Cap: 57.79 Billion