Warner Bros Discovery Inc (WBD)vsWarner Music Group (WMG)
WBD
Warner Bros Discovery Inc
$27.22
-0.22%
COMMUNICATION SERVICES · Cap: $67.68B
WMG
Warner Music Group
$23.89
+1.01%
COMMUNICATION SERVICES · Cap: $12.35B
Smart Verdict
WallStSmart Research — data-driven comparison
Warner Bros Discovery Inc generates 442% more annual revenue ($37.30B vs $6.88B). WMG leads profitability with a 4.4% profit margin vs 1.9%. WMG appears more attractively valued with a PEG of 0.63. WMG earns a higher WallStSmart Score of 61/100 (C+).
WBD
Buy51
out of 100
Grade: C-
WMG
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-106.3%
Fair Value
$13.57
Current Price
$27.22
$13.65 premium
Margin of Safety
-667.5%
Fair Value
$3.88
Current Price
$23.89
$20.01 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B in free cash flow
Every $100 of equity generates 40 in profit
Growing faster than its price suggests
Areas to Watch
2.3% earnings growth
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
Trading at 17.3x book value
4.4% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : WBD
The strongest argument for WBD centers on Market Cap, Price/Book, Free Cash Flow.
Bull Case : WMG
The strongest argument for WMG centers on Return on Equity, PEG Ratio. Revenue growth of 10.4% demonstrates continued momentum. PEG of 0.63 suggests the stock is reasonably priced for its growth.
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.
Bear Case : WMG
The primary concerns for WMG are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 41.5x leaves little room for execution misses. Thin 4.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
WBD carries more volatility with a beta of 1.68 — expect wider price swings.
WMG is growing revenue faster at 10.4% — 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
WMG scores higher overall (61/100 vs 51/100) and 10.4% 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.
Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
Compare with Other ENTERTAINMENT Stocks
Want to dig deeper into these stocks?