Bilibili (NASDAQ:BILI) and Warner Bros. Discovery (NASDAQ:WBD) Financial Analysis

Warner Bros. Discovery (NASDAQ:WBDGet Free Report) and Bilibili (NASDAQ:BILIGet Free Report) are both large-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Institutional and Insider Ownership

60.0% of Warner Bros. Discovery shares are held by institutional investors. Comparatively, 16.1% of Bilibili shares are held by institutional investors. 1.9% of Warner Bros. Discovery shares are held by company insiders. Comparatively, 22.2% of Bilibili shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Warner Bros. Discovery and Bilibili, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Warner Bros. Discovery 2 16 5 0 2.13
Bilibili 0 3 6 0 2.67

Warner Bros. Discovery currently has a consensus target price of $25.99, indicating a potential downside of 6.96%. Bilibili has a consensus target price of $29.61, indicating a potential upside of 20.04%. Given Bilibili’s stronger consensus rating and higher probable upside, analysts clearly believe Bilibili is more favorable than Warner Bros. Discovery.

Profitability

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

Net Margins Return on Equity Return on Assets
Warner Bros. Discovery 1.95% 1.98% 0.72%
Bilibili 3.96% 9.97% 3.86%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Warner Bros. Discovery $37.30 billion 1.86 $727.00 million $0.29 96.31
Bilibili $4.34 billion 2.38 -$184.51 million $0.25 98.68

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

Volatility and Risk

Warner Bros. Discovery has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, Bilibili has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Summary

Bilibili beats Warner Bros. Discovery on 8 of the 14 factors compared between the two stocks.

About Warner Bros. Discovery

(Get Free Report)

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 Bilibili

(Get Free Report)

Bilibili Inc. provides online entertainment services for the young generations in the People's Republic of China. It offers a range of digital content, including professional user generated videos, mobile games, and value-added services, such as live broadcasting, occupationally generated videos, audio drama on Maoer, and comics on Bilibili Comic. The company also provides advertising services; and IP derivatives and other services. In addition, it engages in the business and technology development activities; e-commerce business; and video, comics, and game distribution activities. Bilibili Inc. was founded in 2009 and is headquartered in Shanghai, the People's Republic of China.

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