Analyzing Saga Communications (NASDAQ:SGA) & Warner Bros. Discovery (NASDAQ:WBD)

Saga Communications (NASDAQ:SGA) and Warner Bros. Discovery (NASDAQ:WBD) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Earnings and Valuation

This table compares Saga Communications and Warner Bros. Discovery”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saga Communications	$110.29 million	0.77	$3.46 million	$0.55	24.11
Warner Bros. Discovery	$39.32 billion	0.80	-$11.31 billion	($4.40)	-2.90

Saga Communications has higher earnings, but lower revenue than Warner Bros. Discovery. Warner Bros. Discovery is trading at a lower price-to-earnings ratio than Saga Communications, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Saga Communications and Warner Bros. Discovery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saga Communications	3.15%	2.09%	1.56%
Warner Bros. Discovery	-28.16%	-30.56%	-10.27%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Saga Communications and Warner Bros. Discovery, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saga Communications	0	0	0	0	0.00
Warner Bros. Discovery	0	12	11	1	2.54

Warner Bros. Discovery has a consensus target price of $12.41, indicating a potential downside of 2.65%. Given Warner Bros. Discovery’s stronger consensus rating and higher possible upside, analysts plainly believe Warner Bros. Discovery is more favorable than Saga Communications.

Institutional & Insider Ownership

74.3% of Saga Communications shares are held by institutional investors. Comparatively, 60.0% of Warner Bros. Discovery shares are held by institutional investors. 22.4% of Saga Communications shares are held by company insiders. Comparatively, 1.9% of Warner Bros. Discovery shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Saga Communications has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, Warner Bros. Discovery has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.

Summary

Saga Communications beats Warner Bros. Discovery on 8 of the 15 factors compared between the two stocks.

About Saga Communications

Saga Communications, Inc., a media company, engages in acquiring, developing, and operating broadcast properties in the United States. The company's radio stations employ various programming formats, including classic hits, country, classic country, hot/soft/urban adult contemporary, oldies, classic rock, rock, and news/talk. It owns and operates FM and AM radio stations, and metro signals serving various markets. Saga Communications, Inc. was incorporated in 1986 and is headquartered in Grosse Pointe Farms, Michigan.

About Warner Bros. Discovery

Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming. The Network segment comprises domestic and international television networks. The DTC segment offers premium pay-tv and streaming services. In addition, the company offers portfolio of content, brands, and franchises across television, film, streaming, and gaming under the Warner Bros. Motion Picture Group, Warner Bros. Television Group, DC, HBO, HBO Max, Max, Discovery Channel, discovery+, CNN, HGTV, Food Network, TNT Sports, TBS, TLC, OWN, Warner Bros. Games, Batman, Superman, Wonder Woman, Harry Potter, Looney Tunes, Hanna-Barbera, Game of Thrones, and The Lord of the Rings brands. Further, it provides content through distribution platforms, including linear network, free-to-air, and broadcast television; authenticated GO applications, digital distribution arrangements, content licensing arrangements, and direct-to-consumer subscription products. Warner Bros. Discovery, Inc. was incorporated in 2008 and is headquartered in New York, New York.