Contrasting Entravision Communications (NYSE:EVC) and Warner Bros. Discovery (NASDAQ:WBD)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Entravision Communications	-30.16%	-51.15%	-14.52%
Warner Bros. Discovery	2.00%	2.14%	0.74%

Insider & Institutional Ownership

69.5% of Entravision Communications shares are held by institutional investors. Comparatively, 60.0% of Warner Bros. Discovery shares are held by institutional investors. 8.3% of Entravision 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Entravision Communications has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Warner Bros. Discovery has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Entravision Communications and Warner Bros. Discovery, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entravision Communications	0	0	0	0	0.00
Warner Bros. Discovery	0	11	8	1	2.50

Warner Bros. Discovery has a consensus target price of $13.14, indicating a potential upside of 11.65%. Given Warner Bros. Discovery’s stronger consensus rating and higher probable upside, analysts plainly believe Warner Bros. Discovery is more favorable than Entravision Communications.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entravision Communications	$364.95 million	0.62	-$148.91 million	($1.32)	-1.89
Warner Bros. Discovery	$39.32 billion	0.74	-$11.31 billion	$0.30	39.23

Entravision Communications has higher earnings, but lower revenue than Warner Bros. Discovery. Entravision Communications 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.

Summary

Warner Bros. Discovery beats Entravision Communications on 12 of the 15 factors compared between the two stocks.

About Entravision Communications

Entravision Communications Corporation operates as an advertising solutions, media, and technology company worldwide. The company operates through three segments: Digital, Television, and Audio. It reaches and engages Hispanics in the United States. The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties. It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services; and Smadex, a programmatic ad purchasing platform that enables advertisers to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces. In addition, the company provides a mobile growth solution, such as managed services to advertisers to reach mobile device users; and digital advertising solutions for advertisers. Further, it owns and operates TelevisaUnivision-affiliated television stations. The company operates various television stations; radio stations; and Spanish-language radio stations. Entravision Communications Corporation was founded in 1996 and is headquartered in Santa Monica, California.

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.