WallStSmart

TKO Group Holdings, Inc. (TKO)vsWarner Bros Discovery Inc (WBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 581% more annual revenue ($36.12B vs $5.30B). TKO leads profitability with a 4.3% profit margin vs -8.8%. TKO appears more attractively valued with a PEG of 1.44. TKO earns a higher WallStSmart Score of 59/100 (C).

TKO

Buy

59

out of 100

Grade: C

Growth: 8.0Profit: 6.0Value: 3.3Quality: 4.0
Piotroski: 3/9Altman Z: 1.33

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

TKOSignificantly Overvalued (-26.7%)

Margin of Safety

-26.7%

Fair Value

$166.08

Current Price

$190.31

$24.23 premium

UndervaluedFair: $166.08Overvalued
WBDUndervalued (+56.0%)

Margin of Safety

+56.0%

Fair Value

$63.56

Current Price

$28.04

$35.52 discount

UndervaluedFair: $63.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TKO2 strengths · Avg: 9.0/10
Operating MarginProfitability
32.4%10/10

Strong operational efficiency at 32.4%

Revenue GrowthGrowth
18.2%8/10

18.2% revenue growth

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

Large-cap with strong market position

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

TKO4 concerns · Avg: 3.0/10
Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

Profit MarginProfitability
4.3%3/10

4.3% margin — thin

Debt/EquityHealth
1.463/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : TKO

The strongest argument for TKO centers on Operating Margin, Revenue Growth. Revenue growth of 18.2% demonstrates continued momentum. PEG of 1.44 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 : TKO

The primary concerns for TKO are Return on Equity, Profit Margin, Debt/Equity. A P/E of 65.3x leaves little room for execution misses. Thin 4.3% margins leave little buffer for downturns.

Bear Case : WBD

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

Key Dynamics to Monitor

TKO profiles as a growth stock while WBD is a turnaround play — different risk/reward profiles.

WBD carries more volatility with a beta of 1.57 — expect wider price swings.

TKO is growing revenue faster at 18.2% — sustainability is the question.

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

Bottom Line

TKO scores higher overall (59/100 vs 36/100) and 18.2% revenue growth. WBD offers better value entry with a 56.0% margin of safety. 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.

TKO Group Holdings, Inc.

COMMUNICATION SERVICES · ENTERTAINMENT · USA

TKO Group Holdings, Inc. is a sports and entertainment company. The company is headquartered in New York, New York.

Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

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

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