Contrasting Warner Bros. Discovery (NASDAQ:WBD) & The Arena Group (NYSE:AREN)

Warner Bros. Discovery (NASDAQ:WBDGet Rating) and The Arena Group (NYSE:ARENGet Rating) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Volatility & Risk

Warner Bros. Discovery has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, The Arena Group has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Valuation & Earnings

This table compares Warner Bros. Discovery and The Arena Group’s 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 2.83 $1.01 billion $2.02 7.04
The Arena Group $189.14 million 1.18 -$89.94 million ($2.96) -4.25

Warner Bros. Discovery has higher revenue and earnings than The Arena Group. The Arena 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.

Insider and Institutional Ownership

35.5% of Warner Bros. Discovery shares are owned by institutional investors. 6.1% of Warner Bros. Discovery shares are owned by insiders. Comparatively, 8.3% of The Arena Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Warner Bros. Discovery and The Arena 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%
The Arena Group -40.70% N/A -43.99%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Warner Bros. Discovery and The Arena Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Warner Bros. Discovery 1 3 5 0 2.44
The Arena Group 0 0 2 0 3.00

Warner Bros. Discovery currently has a consensus price target of $28.67, indicating a potential upside of 101.59%. The Arena Group has a consensus price target of $19.50, indicating a potential upside of 55.13%. Given Warner Bros. Discovery’s higher probable upside, equities analysts plainly believe Warner Bros. Discovery is more favorable than The Arena Group.

Summary

Warner Bros. Discovery beats The Arena Group on 12 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 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.

The Arena Group Company Profile (Get Rating)

The Arena Group Holdings, Inc., together with its subsidiaries, operates digital media platform the United States and internationally. The company offers the Platform, a proprietary online publishing platform comprising publishing tools, video platforms, social distribution channels, newsletter technology, machine learning content recommendations, notifications, and other technology. The company was formerly known as TheMaven, Inc. and changed its name to The Arena Group Holdings, Inc. in February 2022. The Arena Group Holdings, Inc. was incorporated in 1990 and is based in New York, New York.

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