Will Epic Universe Allow Comcast (CMCSA) to Compete With Disney (DIS)?

Comcast (CMCSA) subsidiary Universal wants to challenge Disney (DIS) with the launch of its Epic Universe theme park. That park opened today, allowing visitors to meet and interact with their favorite characters from across several series, including How to Train Your Dragon, Warner Bros’ (WBD) Harry Potter, and Nintendo’s (NTDOF) Super Mario Bros.

Comcast didn’t skimp on Epic Universe, which cost $7 billion to build. With the park complete, the real question is can this new theme park, the first of its size created in more than 20 years, compete with Disney World. Both operate out of Florida and appeal to adults and children alike with their attractions, setting the stage for a battle to see which one will attract more visitors.

Disney World vs. Epic Universe

Disney definitely has the home-field advantage and the deep roots of Disney World will make it difficult for Epic Universe to compete. However, Comcast’s collaborations offer looks at media franchises outside of its own holdings, allowing it to appeal to a wider target audience than Disney World does.

CMCSA shareholders don’t seem to care much one way or another about Epic Universe. The company’s stock has slipped nearly 1% as of this writing, extending its 5.59% year-to-date loss and 9.26% 52-week drop. Traders will likely get a better idea of how Epic Universe will affect CMCSA stock when the company reports earnings in July.

CMCSA vs. DIS: Which Stock Do Analysts Prefer?

Comparing Comcast and Disney, analysts seem to prefer the latter. DIS stock has an analysts’ consensus Strong Buy rating, compared to CMCSA’s Moderate Buy. However, the upside potential for Comcast is higher at 16.56%, with Disney’s at 11.13%. One thing investors will note is that CMCSA is priced well below Disney at 40.62 versus $123.47. Comcast’s $132.88 billion market cap also trails well behind Disney’s $201.99 billion.

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