Warner Bros. Discovery (WBD) versus Its Peers Critical Contrast

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

Earnings and Valuation

This table compares Warner Bros. Discovery and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Warner Bros. Discovery	$12.19 billion	$1.01 billion	13.96
Warner Bros. Discovery Competitors	$11.52 billion	$2.61 billion	13.41

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

Institutional and Insider Ownership

35.5% of Warner Bros. Discovery shares are held by institutional investors. Comparatively, 51.0% of shares of all “Cable & other pay television services” companies are held by institutional investors. 6.1% of Warner Bros. Discovery shares are held by company insiders. Comparatively, 17.5% of shares of all “Cable & other pay television services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Warner Bros. Discovery and its rivals’ 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	33.95%	3.21%	4.37%

Analyst Ratings

This is a breakdown of current ratings for Warner Bros. Discovery and its rivals, as reported by MarketBeat.com.

	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 target price of $40.00, suggesting a potential upside of 86.05%. As a group, “Cable & other pay television services” companies have a potential upside of 58.89%. Given Warner Bros. Discovery’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Warner Bros. Discovery is more favorable than its rivals.

Risk & Volatility

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

Summary

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

About Warner Bros. Discovery (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 Español, 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.