WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 2713% more annual revenue ($37.30B vs $1.33B). SPHR leads profitability with a 8.6% profit margin vs 1.9%. WBD earns a higher WallStSmart Score of 51/100 (C-).

SPHR

Hold

48

out of 100

Grade: D+

Growth: 7.3Profit: 4.0Value: 4.3Quality: 4.0
Piotroski: 1/9Altman Z: 0.51

WBD

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 4.5Value: 5.7Quality: 4.3
Piotroski: 4/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SPHRFair Value (-1.9%)

Margin of Safety

-1.9%

Fair Value

$92.99

Current Price

$133.33

$40.34 premium

UndervaluedFair: $92.99Overvalued
WBDUndervalued (+60.6%)

Margin of Safety

+60.6%

Fair Value

$71.08

Current Price

$27.11

$43.97 discount

UndervaluedFair: $71.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SPHR2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
37.7%10/10

Revenue surging 37.7% year-over-year

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

WBD3 strengths · Avg: 9.0/10
EPS GrowthGrowth
226.7%10/10

Earnings expanding 226.7% YoY

Market CapQuality
$67.99B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

SPHR4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
5.5%3/10

ROE of 5.5% — below average capital efficiency

Operating MarginProfitability
2.8%3/10

Operating margin of 2.8%

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

WBD4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.1%3/10

ROE of 2.1% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

PEG RatioValuation
216.922/10

Expensive relative to growth rate

Revenue GrowthGrowth
-5.7%2/10

Revenue declined 5.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : SPHR

The strongest argument for SPHR centers on Revenue Growth, Price/Book. Revenue growth of 37.7% demonstrates continued momentum.

Bull Case : WBD

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

Bear Case : SPHR

The primary concerns for SPHR are EPS Growth, Return on Equity, Operating Margin. A P/E of 48.5x leaves little room for execution misses.

Bear Case : WBD

The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

SPHR profiles as a hypergrowth stock while WBD is a value play — different risk/reward profiles.

SPHR carries more volatility with a beta of 1.68 — expect wider price swings.

SPHR is growing revenue faster at 37.7% — sustainability is the question.

SPHR generates stronger free cash flow (136M), providing more financial flexibility.

Bottom Line

WBD scores higher overall (51/100 vs 48/100). Both earn "Buy" 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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