WallStSmart

Sphere Entertainment Co. (SPHR)vsWarner Bros Discovery Inc (WBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 2562% more annual revenue ($36.12B vs $1.36B). SPHR leads profitability with a -5.7% profit margin vs -8.8%. WBD earns a higher WallStSmart Score of 36/100 (F).

SPHR

Hold

36

out of 100

Grade: F

Growth: 6.7Profit: 2.5Value: 4.0Quality: 5.0
Piotroski: 5/9Altman Z: 0.93

WBD

Hold

36

out of 100

Grade: F

Growth: 2.7Profit: 3.5Value: 5.7Quality: 4.0
Piotroski: 4/9Altman Z: 0.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SPHRSignificantly Overvalued (-24.0%)

Margin of Safety

-24.0%

Fair Value

$76.45

Current Price

$141.91

$65.46 premium

UndervaluedFair: $76.45Overvalued
WBDUndervalued (+55.9%)

Margin of Safety

+55.9%

Fair Value

$63.41

Current Price

$30.83

$32.58 discount

UndervaluedFair: $63.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SPHR1 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

WBD2 strengths · Avg: 8.5/10
Market CapQuality
$70.70B9/10

Large-cap with strong market position

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

SPHR4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
5.3%3/10

ROE of 5.3% — below average capital efficiency

Free Cash FlowQuality
$-48.13M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.932/10

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 : SPHR

The strongest argument for SPHR centers on Price/Book. Revenue growth of 11.0% demonstrates continued momentum.

Bull Case : WBD

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

Bear Case : SPHR

The primary concerns for SPHR are EPS Growth, Return on Equity, Free Cash Flow.

Bear Case : WBD

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

Key Dynamics to Monitor

SPHR carries more volatility with a beta of 1.61 — expect wider price swings.

SPHR is growing revenue faster at 11.0% — sustainability is the question.

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

Monitor ENTERTAINMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SPHR scores higher overall (36/100 vs 36/100) and 11.0% revenue growth. WBD offers better value entry with a 55.9% margin of safety. Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Sphere Entertainment Co.

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Madison Square Garden Entertainment Corp. The company is headquartered in New York, New York.

Visit Website →

Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

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

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