Entertainment companies Paramount (PARA) and Disney (DIS) will compete at the box office this weekend with their latest films. Paramount’s Sonic the Hedgehog 3 will be up against Disney’s Mufasa: The Lion King. Both of these films are part of an established series, with Sonic 3 being based on the Sega Sammy (SGAMY) video game franchise of the same name and Mufasa being a prequel to the 2019 remake of The Lion King.
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Current estimates have Sonic 3 beating out Mufasa at the domestic box office. Experts predict the blue hedgehog’s movie will bring in between $55 million and $60 million during its opening weekend, as compared to $50 million for Mufasa.
Turning to the international market, Mufasa has the advantage over Sonic 3. That’s because it will go unchallenged overseas as Sonic 3 won’t debut in foreign theaters until Christmas Day. Experts predict this will result in a $130 million international box office for Mufasa’s opening weekend.
What This Means for PARA and DIS Stock
Paramount stock would greatly benefit from a box office win this weekend. The entertainment company’s shares have suffered through 2024 with PARA stock down 25.24% year-to-date. While the company’s box office performance has been solid this year, its television department is holding it back as customers continue to shift away from traditional TV in favor of streaming.
On the other hand, Disney has had a spectacular box office performance this year with several major wins. That includes Inside Out 2 and Deadpool & Wolverine surpassing $600 million. Moana 2 is another big performer with over $339 million at the box office and hasn’t finished its theatrical run yet. This is reflected in its share price, which is up 29.11% year-to-date.
Should Traders Invest in PARA or DIS?
Turning to Wall Street, the analysts’ consensus rating for Paramount is Hold while Disney’s is Moderate Buy. The average price target for PARA stock is $12.60, representing a potential 14.96% upside for the shares. For comparison, the average price target for DIS stock is $125.68, representing a potential 9.01% upside for those shares.
