Critical Comparison: Warner Bros. Discovery (WBD) versus The Competition

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

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Warner Bros. Discovery $12.19 billion $1.01 billion 8.99
Warner Bros. Discovery Competitors $11.52 billion $2.61 billion 13.72

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

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.

Insider & Institutional Ownership

35.5% of Warner Bros. Discovery shares are owned by institutional investors. Comparatively, 50.3% 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, 17.6% of shares of all “Cable & other pay television services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds 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 10.53% 10.38% 3.96%
Warner Bros. Discovery Competitors 33.83% 3.21% 4.28%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Warner Bros. Discovery 1 1 3 0 2.40
Warner Bros. Discovery Competitors 392 1846 2664 76 2.49

Warner Bros. Discovery presently has a consensus price target of $34.67, indicating a potential upside of 91.00%. As a group, “Cable & other pay television services” companies have a potential upside of 80.80%. Given Warner Bros. Discovery’s higher probable upside, equities analysts plainly believe Warner Bros. Discovery is more favorable than its rivals.

Summary

Warner Bros. Discovery rivals beat Warner Bros. Discovery on 9 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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