Warner Bros. Discovery (NASDAQ:WBD – Get Rating) and Hemisphere Media Group (NASDAQ:HMTV – Get Rating) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Insider and Institutional Ownership
35.5% of Warner Bros. Discovery shares are owned by institutional investors. Comparatively, 76.1% of Hemisphere Media Group shares are owned by institutional investors. 6.1% of Warner Bros. Discovery shares are owned by insiders. Comparatively, 53.5% of Hemisphere Media Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of current recommendations for Warner Bros. Discovery and Hemisphere Media Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Warner Bros. Discovery||1||1||5||0||2.57|
|Hemisphere Media Group||0||1||1||0||2.50|
Warner Bros. Discovery currently has a consensus target price of $30.40, indicating a potential upside of 71.36%. Hemisphere Media Group has a consensus target price of $13.00, indicating a potential upside of 96.08%. Given Hemisphere Media Group’s higher probable upside, analysts clearly believe Hemisphere Media Group is more favorable than Warner Bros. Discovery.
This table compares Warner Bros. Discovery and Hemisphere Media Group’s 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%|
|Hemisphere Media Group||-17.17%||-14.24%||-5.89%|
Risk and Volatility
Warner Bros. Discovery has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Hemisphere Media Group has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
Valuation & Earnings
This table compares Warner Bros. Discovery and Hemisphere Media Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Warner Bros. Discovery||$12.19 billion||3.53||$1.01 billion||$2.02||8.78|
|Hemisphere Media Group||$195.65 million||1.36||$11.06 million||($0.89)||-7.45|
Warner Bros. Discovery has higher revenue and earnings than Hemisphere Media Group. Hemisphere Media Group is trading at a lower price-to-earnings ratio than Warner Bros. Discovery, indicating that it is currently the more affordable of the two stocks.
Warner Bros. Discovery beats Hemisphere Media Group on 11 of the 14 factors compared between the two stocks.
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 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.
Hemisphere Media Group Company Profile (Get Rating)
Hemisphere Media Group, Inc. operates as the Spanish-language media company. The company operates Pantaya, a subscription streaming service of Spanish-language media with approximately million subscribers; Cinelatino, a cable movie network with approximately 17.1 million subscribers in the United States, Latin America, and Canada; WAPA, a broadcast television network and television content producer; WAPA.TV, a news and entertainment website, as well as mobile apps, featuring content produced by WAPA; and WAPA Deportes, a sports television network in Puerto Rico. It also operates WAPA America, a cable television network that serves approximately 3.3 million subscribers in the United States; and Pasiones, a cable television network, which showcases telenovelas and serialized dramas to approximately 3.7 million subscribers in the United States and 15.4 million subscribers in Latin America. In addition, the company operates Centroamerica TV, a cable television network that provides news and entertainment, and soccer programming to approximately 3.2 million subscribers in the United States; and Television Dominicana, a cable television network, which offers news and entertainment programs to approximately 2.2 million subscribers in the United States. Further, it operates Snap Media, a distributor of content to broadcast and cable television networks; and over-the-top, and subscription and advertising video-on-demand platforms in Latin America; and REMEZCLA: a digital media company targeting English-speaking and the bilingual U.S. Hispanic millennials. The company was incorporated in 2013 and is headquartered in Coral Gables, Florida.
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