WallStSmart

Constellation Brands Inc Class A (STZ)vsWarner Bros Discovery Inc (WBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 297% more annual revenue ($37.30B vs $9.38B). STZ leads profitability with a 11.8% profit margin vs 1.9%. STZ appears more attractively valued with a PEG of 5.46. WBD earns a higher WallStSmart Score of 51/100 (C-).

STZ

Hold

50

out of 100

Grade: D+

Growth: 2.7Profit: 7.5Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.61

WBD

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 4.5Value: 2.0Quality: 4.3
Piotroski: 4/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

STZSignificantly Overvalued (-276.7%)

Margin of Safety

-276.7%

Fair Value

$43.32

Current Price

$151.56

$108.24 premium

UndervaluedFair: $43.32Overvalued
WBDSignificantly Overvalued (-106.3%)

Margin of Safety

-106.3%

Fair Value

$13.57

Current Price

$27.22

$13.65 premium

UndervaluedFair: $13.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

STZ1 strengths · Avg: 10.0/10
Operating MarginProfitability
33.9%10/10

Strong operational efficiency at 33.9%

WBD3 strengths · Avg: 8.3/10
Market CapQuality
$67.68B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.38B8/10

Generating 1.4B in free cash flow

Areas to Watch

STZ4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.614/10

Distress zone — elevated risk

Debt/EquityHealth
1.383/10

Elevated debt levels

PEG RatioValuation
5.462/10

Expensive relative to growth rate

Revenue GrowthGrowth
-9.8%2/10

Revenue declined 9.8%

WBD4 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.3%4/10

2.3% earnings growth

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

Comparative Analysis Report

WallStSmart Research

Bull Case : STZ

The strongest argument for STZ centers on Operating Margin.

Bull Case : WBD

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

Bear Case : STZ

The primary concerns for STZ are Altman Z-Score, Debt/Equity, PEG Ratio.

Bear Case : WBD

The primary concerns for WBD are EPS Growth, Return on Equity, Profit Margin. A P/E of 94.1x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

STZ profiles as a declining stock while WBD is a value play — different risk/reward profiles.

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

WBD is growing revenue faster at -5.7% — sustainability is the question.

WBD generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

WBD scores higher overall (51/100 vs 50/100). 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.

Constellation Brands Inc Class A

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.

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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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