Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, animated-movie house DreamWorks Animation (Nasdaq: DWA) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at DreamWorks' business and see what CAPS investors are saying about the stock right now.

DreamWorks Animation facts

Headquarters (founded)

Glendale, Calif. (1985)

Market Cap

$2.44 billion


Movies and entertainment

Trailing-12-Month Revenue

$703.34 million


Co-Founder/CEO Jeffrey Katzenberg
CFO Lewis Coleman

Return on Equity (average, past 3 years)



$169.6 million / $0


Sony (NYSE: SNE)
Time Warner (NYSE: TWX)
Walt Disney (NYSE: DIS)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 1,132 members who have rated DreamWorks believe the stock will outperform the S&P 500 going forward. These bulls include dremmell7 and fellow Fool Anders Bylund (TMFZahrim), who is ranked in the top 5% of our community.

Just last month, dremmell7 noted that DreamWorks "is one of the top leaders in the media industry." Our CAPS member continues: "They are always coming up with new movies and they are increasing their use of 3D which is currently in high demand."

DreamWorks Animation's portfolio of popular franchises, growing library of films, and attractive financials continue to support its perfect five-star CAPS status. In fact, DreamWorks' three-year average operating margin (27.9%) easily tops that of listed rivals Sony (1.7%), Time Warner (19.7%), and Disney (17.7%).

Anders expands on the outperform case:

Shrek, How to Train Your Dragon, Kung Fu Panda -- there's a ton of franchise-level star power here. Yes, the stock is a bit pricey ... but very comparable to Disney's on a forward-looking basis. Sometimes you get exactly what you pay for. It's also a five-star CAPS stock and a two-time recommendation of our flagship Stock Advisor newsletter. That kind of pedigree is hard to ignore.

What do you think about DreamWorks, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. DreamWorks is a Motley Fool Stock Advisor selection. Disney is a choice of both Stock Advisor and Inside Value. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.