Townsquare Media (NYSE:TSQ) and Warner Bros. Discovery (NASDAQ:WBD) Head to Head Comparison

Townsquare Media (NYSE:TSQ) and Warner Bros. Discovery (NASDAQ:WBD) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider & Institutional Ownership

71.7% of Townsquare Media shares are held by institutional investors. Comparatively, 60.0% of Warner Bros. Discovery shares are held by institutional investors. 30.5% of Townsquare Media 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.

Valuation and Earnings

This table compares Townsquare Media and Warner Bros. Discovery”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Townsquare Media	$447.25 million	0.26	-$10.93 million	$2.02	3.49
Warner Bros. Discovery	$39.32 billion	0.74	-$11.31 billion	$0.30	39.50

Townsquare Media has higher earnings, but lower revenue than Warner Bros. Discovery. Townsquare Media 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.

Volatility & Risk

Townsquare Media has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Warner Bros. Discovery has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Townsquare Media	7.93%	-56.87%	3.43%
Warner Bros. Discovery	2.00%	2.14%	0.74%

Analyst Recommendations

This is a summary of current recommendations for Townsquare Media and Warner Bros. Discovery, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Townsquare Media	0	0	2	0	3.00
Warner Bros. Discovery	0	11	8	1	2.50

Townsquare Media presently has a consensus price target of $17.00, indicating a potential upside of 141.48%. Warner Bros. Discovery has a consensus price target of $13.1406, indicating a potential upside of 10.89%. Given Townsquare Media’s stronger consensus rating and higher probable upside, analysts clearly believe Townsquare Media is more favorable than Warner Bros. Discovery.

Summary

Townsquare Media beats Warner Bros. Discovery on 8 of the 15 factors compared between the two stocks.

About Townsquare Media

Townsquare Media, Inc. operates as a digital media and marketing solutions company in small and medium-sized businesses. It operates through three segments: Subscription Digital Marketing Solutions, Digital Advertising, and Broadcast Advertising. The Subscription Digital Marketing Solutions segment offers website design, creation, and development, as well as hosting services; and search engine optimization, online directory optimization, e-commerce solutions, online reputation monitoring, social media management, appointment scheduling, payment and invoice, customer management, and email and SMS marketing services. The Digital Advertising segment provides digital advertising on its owned and operated, digital programmatic advertising, and data analytics and management platform. The Broadcast Advertising segment engages in the sale of advertising on local radio stations to local, regional, and national spot advertisers, as well as national network advertisers. It also owns and operates live events, including concerts, expositions, and other experiential events; and operates local media under the WYRK.com, WJON.com, and NJ101.5.com brands, as well as national music under the XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com brands. The company was formerly known as Regent Communications, Inc. and changed its name to Townsquare Media, Inc. in May 2010. Townsquare Media, Inc. is headquartered in Purchase, New York.

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.