Warner Bros. Discovery (NASDAQ:WBD – Get Free Report) and E.W. Scripps (NASDAQ:SSP – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Institutional and Insider Ownership
60.0% of Warner Bros. Discovery shares are held by institutional investors. Comparatively, 67.8% of E.W. Scripps shares are held by institutional investors. 1.9% of Warner Bros. Discovery shares are held by insiders. Comparatively, 3.6% of E.W. Scripps shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Warner Bros. Discovery and E.W. Scripps”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Warner Bros. Discovery | $39.32 billion | 1.22 | -$11.31 billion | $0.30 | 64.50 |
E.W. Scripps | $2.51 billion | 0.09 | $87.60 million | $0.48 | 5.31 |
E.W. Scripps has lower revenue, but higher earnings than Warner Bros. Discovery. E.W. Scripps 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 and Risk
Warner Bros. Discovery has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, E.W. Scripps has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Warner Bros. Discovery and E.W. Scripps, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Warner Bros. Discovery | 0 | 15 | 7 | 1 | 2.39 |
E.W. Scripps | 0 | 1 | 1 | 0 | 2.50 |
Warner Bros. Discovery currently has a consensus target price of $14.64, indicating a potential downside of 24.35%. E.W. Scripps has a consensus target price of $5.50, indicating a potential upside of 115.69%. Given E.W. Scripps’ stronger consensus rating and higher possible upside, analysts clearly believe E.W. Scripps is more favorable than Warner Bros. Discovery.
Profitability
This table compares Warner Bros. Discovery and E.W. Scripps’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Warner Bros. Discovery | 2.00% | 2.14% | 0.74% |
E.W. Scripps | 4.25% | 17.68% | 2.98% |
Summary
E.W. Scripps beats Warner Bros. Discovery on 9 of the 15 factors compared between the two stocks.
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.
About E.W. Scripps
The E.W. Scripps Company, together with its subsidiaries, operates as a media enterprise through a portfolio of local television stations, national news, and entertainment networks in the United States. It operates through Local Media, Scripps Networks, and Other segments. The Local Media segment operates broadcast television stations, which produce news, information, sports, and entertainment content, as well as its related digital operations; runs network, syndicated, and original programming, and local sporting events; and provides core and political advertising services. The Scripps Networks segment offers national television networks through free over-the-air broadcast, cable/satellite, connected TV, and digital distribution. This segment also provides Scripp News, a national news network, which provides politics, entertainment, science, and technology news; Court TV, which showcases live trials; entertainment brands, such as Bounce, Defy TV, Grit, ION Mystery, and Laff; and ION, a national network of broadcast stations and broadcast television spectrum, which distributes programming through Federal Communications Commission-licensed television stations, as well as affiliated TV stations through over-the-air broadcast and pay TV platforms. In addition, it provides content and services through digital platforms, including the Internet, smartphones, and tablets; Nuvyyo, which offers consumers DVR product solutions to watch and record free over-the-air HDTV on connected devices; and Scripps National Spelling Bee, which shows educational programs. The company serves audiences and businesses through cable and satellite service providers. The E.W. Scripps Company was founded in 1878 and is headquartered in Cincinnati, Ohio.
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