TKO Group Holdings, Inc. (TKO)vsWarner Bros Discovery Inc (WBD)
TKO
TKO Group Holdings, Inc.
$193.94
+0.24%
COMMUNICATION SERVICES · Cap: $15.27B
WBD
Warner Bros Discovery Inc
$27.22
-0.22%
COMMUNICATION SERVICES · Cap: $67.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Warner Bros Discovery Inc generates 688% more annual revenue ($37.30B vs $4.74B). TKO leads profitability with a 4.1% profit margin vs 1.9%. TKO appears more attractively valued with a PEG of 1.46. TKO earns a higher WallStSmart Score of 58/100 (C).
TKO
Buy58
out of 100
Grade: C
WBD
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-98.9%
Fair Value
$105.77
Current Price
$193.94
$88.17 premium
Margin of Safety
-106.3%
Fair Value
$13.57
Current Price
$27.22
$13.65 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 65.0% YoY
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B in free cash flow
Areas to Watch
Grey zone — moderate risk
ROE of 5.6% — below average capital efficiency
4.1% margin — thin
Premium valuation, high expectations priced in
2.3% earnings growth
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : TKO
The strongest argument for TKO centers on EPS Growth. Revenue growth of 11.9% demonstrates continued momentum. PEG of 1.46 suggests the stock is reasonably priced for its growth.
Bull Case : WBD
The strongest argument for WBD centers on Market Cap, Price/Book, Free Cash Flow.
Bear Case : TKO
The primary concerns for TKO are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 85.6x leaves little room for execution misses. Thin 4.1% margins leave little buffer for downturns.
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
WBD carries more volatility with a beta of 1.68 — expect wider price swings.
TKO is growing revenue faster at 11.9% — sustainability is the question.
WBD generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor ENTERTAINMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TKO scores higher overall (58/100 vs 51/100) and 11.9% revenue growth. Both earn "Buy" and "Buy" 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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