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 respected four-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 facts

Headquarters (founded)

Glendale, Calif. (1985)

Market Cap

$1.68 billion


Movies and entertainment

Trailing-12-Month Revenue

$730.7 million


Co-founder/CEO Jeffrey Katzenberg
CFO Lewis Coleman

Return on Equity (average, past 3 years)



$86.1 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, 94.5% of the 1,151 members who have rated DreamWorks believe the stock will outperform the S&P 500 going forward. These bulls include alfredodr and Oatflake.

About a month ago , alfredodr tapped DreamWorks as a solid bargain opportunity: "I believe this company has a huge potential to grow, and it's currently undervalued. With all the intellectual property they have its a matter of time before they hit a home run."

DreamWorks even boasts a robust three-year average operating margin of 24.3%. That's much higher than that of rivals Sony (1.5%), Time Warner (19.6%), and Walt Disney (17.4%).

CAPS member Oatflake elaborates on the DreamWorks bull case:

It's not super clear to me this will outperform immediately, but I do think they are going to be a major player in terms of building up merchandising with an every growing stable of well known characters, especially with the recent Kung Fu Panda movies. They really need to take a hint from Disney and make something a movie about something that can easily be turned into toys (i.e. Cars).

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. Motley Fool newsletter services have recommended buying shares of DreamWorks and Disney. 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.