Comparing Warner Bros. Discovery (WBD) and Its Rivals

Warner Bros. Discovery (NASDAQ:WBDGet Rating) is one of 36 public companies in the “Cable & other pay television services” industry, but how does it compare to its peers? We will compare Warner Bros. Discovery to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Insider & Institutional Ownership

35.5% of Warner Bros. Discovery shares are owned by institutional investors. Comparatively, 51.0% of shares of all “Cable & other pay television services” companies are owned by institutional investors. 6.1% of Warner Bros. Discovery shares are owned by company insiders. Comparatively, 17.4% of shares of all “Cable & other pay television services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Warner Bros. Discovery and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Warner Bros. Discovery 1 0 3 0 2.50
Warner Bros. Discovery Competitors 391 1841 2662 76 2.49

Warner Bros. Discovery currently has a consensus price target of $40.00, indicating a potential upside of 94.46%. As a group, “Cable & other pay television services” companies have a potential upside of 59.36%. Given Warner Bros. Discovery’s stronger consensus rating and higher probable upside, analysts plainly believe Warner Bros. Discovery is more favorable than its peers.

Profitability

This table compares Warner Bros. Discovery and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Warner Bros. Discovery 8.25% 8.12% 3.04%
Warner Bros. Discovery Competitors 33.94% 3.20% 4.38%

Volatility & Risk

Warner Bros. Discovery has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Warner Bros. Discovery’s peers have a beta of 1.12, indicating that their average share price is 12% more volatile than the S&P 500.

Valuation & Earnings

This table compares Warner Bros. Discovery and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Warner Bros. Discovery $12.19 billion $1.01 billion 13.36
Warner Bros. Discovery Competitors $11.52 billion $2.61 billion 13.28

Warner Bros. Discovery has higher revenue, but lower earnings than its peers. Warner Bros. Discovery is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Warner Bros. Discovery peers beat Warner Bros. Discovery on 7 of the 13 factors compared.

Warner Bros. Discovery Company Profile (Get Rating)

Warner Bros. Discovery, Inc., a media company, provides content across various distribution platforms in approximately 50 languages worldwide. It also produces, develops, and distributes feature films, television, gaming, and other content in various physical and digital formats through basic networks, direct-to-consumer or theatrical, TV content, and games licensing. The company owns and operates various television networks under the Discovery Channel, HGTV, Food Network, TLC, Animal Planet, Investigation Discovery, Travel Channel, Science, MotorTrend, Discovery en EspaƱol, Discovery Familia, Eurosport, TVN, Discovery Kids, Discovery Family, American Heroes Channel, Destination America, Discovery Life, Magnolia Network, Cooking Channel, ID, the Oprah Winfrey Network, Eurosport, DMAX, and Discovery Home & Health brands, as well as other regional television networks. Its content spans genres, including survival, natural history, exploration, sports, general entertainment, home, food, travel, heroes, adventure, crime and investigation, health, and kids. The company also operates production studios that develop and produce content; and digital products and Websites. It provides content through various distribution platforms comprising pay-television, free-to-air and broadcast television, authenticated GO applications, digital distribution arrangements, content licensing agreements, and direct-to-consumer subscriptions, as well as various platforms that include brand-aligned Websites, online streaming, mobile devices, video on demand, and broadband channels. Warner Bros. Discovery, Inc.is headquartered in New York, New York.

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