Lately there has been a lot of talk about little brother MAKO Surgical Corp. (NASDAQ:MAKO). Mako is not in the position that Intuitive Surgical, Inc. (NASDAQ:ISRG) is in–Mako is still very much dependent on how many units they sell. 2012 was a rough year for the company, as they originally predicted selling 56-62 units. That unfortunately didn’t materialize–they only sold 45. This coming year they predict selling only 45, which means sales would be flat.
While there is some uncertainty surrounding the lawsuits against Intuitive Surgical right now, they appear to be the healthier option of the two. Mako could still have a hard time finding profits for the next couple of years. But with Intuitive Surgical, Inc. (NASDAQ:ISRG), we have seen that their profits are becoming those of a maturing company. The P/E ratio is a little high, but forward P/E is around 24, which seems reasonable for a still-growing company.
The Lucasfilm Buyout
Many were surprised and excited when news broke not too long ago that The Walt Disney Company (NYSE:DIS) was buying Lucasfilm. This is in line with the buyouts they have done over the past several years now. But how has Disney done in identifying value in their acquisitions?
| Year | Studio | Buy-out Price | Average Annual Revenue* |
| 2006 | Pixar | $7.4 Billion | $800 million |
| 2009 | Marvel | $4.2 Billion | $1.4 billion |
| 2012 | Lucasfilm | $4.0 Billion | yet to be seen |
*Approximate. Data compiled from www.the-numbers.com and includes only box office and dvd sales. This data also notably leaves out merchandise from the movies. The merchandise revenue from Pixar’s Cars alone is estimated at around $10 billion.
As the table above demonstrates, Disney has a fantastic track record of identifying the value of their acquisitions.
Disney’s Pixar deal has the studio making one new movie every year. The Marvel deal requires the studio to release two films every year. The Lucasfilm deal won’t start adding any revenue right away. The first movie won’t be until Episode 7 in 2015. But interestingly enough, Lucasfilm has said that they will be making 2-3 movies a year starting in 2015. That is truly remarkable when you consider that in the last 13 years they have only released five movies.
If Lucasfilm could release two movies a year, it is very possible for them to bring in $1 billion in revenue annually for Disney. With the success that their studios are having, things are really looking up for Disney long-term.
Final Thoughts
I hope that this info helps you kick your portfolio into warp speed. Unfortunately there isn’t a single public traded company that is benefiting from lightsaber technology. Scientists keep telling us that lightsabers are impossible. We also can’t invest (at least yet) in companies poised to profit from outer space exploration like SpaceX. But there are plenty of companies in the meantime that are worth our investing attention.
May the Fool be with you.
The article The Jedi Portfolio originally appeared on Fool.com and is written by Jon Quast.
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