WallStSmart

Imax Corp (IMAX)vsWarner Bros Discovery Inc (WBD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 8580% more annual revenue ($36.12B vs $416.08M). IMAX leads profitability with a 9.8% profit margin vs -8.8%. IMAX appears more attractively valued with a PEG of 1.08. IMAX earns a higher WallStSmart Score of 61/100 (C+).

IMAX

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 1.08

WBD

Avoid

33

out of 100

Grade: F

Growth: 2.7Profit: 3.5Value: 5.7Quality: 4.0
Piotroski: 5/9Altman Z: 0.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

IMAXSignificantly Overvalued (-27.8%)

Margin of Safety

-27.8%

Fair Value

$28.56

Current Price

$47.67

$19.11 premium

UndervaluedFair: $28.56Overvalued
WBDUndervalued (+55.7%)

Margin of Safety

+55.7%

Fair Value

$63.12

Current Price

$30.95

$32.17 discount

UndervaluedFair: $63.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IMAX2 strengths · Avg: 8.0/10
Operating MarginProfitability
22.5%8/10

Strong operational efficiency at 22.5%

EPS GrowthGrowth
35.0%8/10

Earnings expanding 35.0% YoY

WBD2 strengths · Avg: 8.5/10
Market CapQuality
$77.60B9/10

Large-cap with strong market position

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

IMAX2 concerns · Avg: 2.0/10
P/E RatioValuation
69.4x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.082/10

Distress zone — elevated risk

WBD4 concerns · Avg: 2.0/10
PEG RatioValuation
55.182/10

Expensive relative to growth rate

Return on EquityProfitability
-9.6%2/10

ROE of -9.6% — below average capital efficiency

Revenue GrowthGrowth
-11.2%2/10

Revenue declined 11.2%

EPS GrowthGrowth
-90.6%2/10

Earnings declined 90.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : IMAX

The strongest argument for IMAX centers on Operating Margin, EPS Growth. Revenue growth of 12.2% demonstrates continued momentum. PEG of 1.08 suggests the stock is reasonably priced for its growth.

Bull Case : WBD

The strongest argument for WBD centers on Market Cap, Price/Book.

Bear Case : IMAX

The primary concerns for IMAX are P/E Ratio, Altman Z-Score. A P/E of 69.4x leaves little room for execution misses.

Bear Case : WBD

The primary concerns for WBD are PEG Ratio, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

IMAX profiles as a value stock while WBD is a turnaround play — different risk/reward profiles.

WBD carries more volatility with a beta of 1.54 — expect wider price swings.

IMAX is growing revenue faster at 12.2% — sustainability is the question.

WBD generates stronger free cash flow (572M), providing more financial flexibility.

Bottom Line

IMAX scores higher overall (61/100 vs 33/100) and 12.2% revenue growth. WBD offers better value entry with a 55.7% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Imax Corp

COMMUNICATION SERVICES · ENTERTAINMENT · USA

IMAX Corporation, is a worldwide entertainment technology company. The company is headquartered in Mississauga, Canada.

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Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Bros. The company is headquartered in New York, New York.

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