Warner Bros. Discovery (WBD) vs. The Competition Financial 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 contrast to its competitors? We will compare Warner Bros. Discovery to similar businesses based on the strength of its earnings, valuation, dividends, risk, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Warner Bros. Discovery and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Warner Bros. Discovery	$12.19 billion	$1.01 billion	8.43
Warner Bros. Discovery Competitors	$11.52 billion	$2.61 billion	12.63

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

Profitability

This table compares Warner Bros. Discovery and its competitors’ 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	34.11%	3.03%	4.33%

Analyst Recommendations

This is a breakdown of recent ratings for Warner Bros. Discovery and its competitors, as provided 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	1852	2667	76	2.49

Warner Bros. Discovery currently has a consensus price target of $34.67, indicating a potential upside of 103.68%. As a group, “Cable & other pay television services” companies have a potential upside of 69.21%. Given Warner Bros. Discovery’s higher probable upside, research analysts clearly believe Warner Bros. Discovery is more favorable than its competitors.

Insider and Institutional Ownership

35.5% of Warner Bros. Discovery shares are owned by institutional investors. Comparatively, 51.3% 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 insiders. Comparatively, 17.5% of shares of all “Cable & other pay television services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Warner Bros. Discovery has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Warner Bros. Discovery’s competitors have a beta of 1.13, meaning that their average share price is 13% more volatile than the S&P 500.

Summary

Warner Bros. Discovery competitors beat Warner Bros. Discovery on 8 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.