Warner Bros. Discovery (NASDAQ:WBD – Get Rating) and AMC Networks (NASDAQ:AMCX – Get Rating) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
This table compares Warner Bros. Discovery and AMC Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Warner Bros. Discovery||10.53%||10.38%||3.96%|
Volatility and Risk
Warner Bros. Discovery has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, AMC Networks has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Insider and Institutional Ownership
35.5% of Warner Bros. Discovery shares are held by institutional investors. Comparatively, 78.0% of AMC Networks shares are held by institutional investors. 6.1% of Warner Bros. Discovery shares are held by insiders. Comparatively, 28.6% of AMC Networks shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Warner Bros. Discovery and AMC Networks’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Warner Bros. Discovery||$12.19 billion||3.60||$1.01 billion||$2.02||8.96|
|AMC Networks||$3.08 billion||0.49||$250.60 million||$6.15||5.73|
Warner Bros. Discovery has higher revenue and earnings than AMC Networks. AMC Networks is trading at a lower price-to-earnings ratio than Warner Bros. Discovery, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Warner Bros. Discovery and AMC Networks, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Warner Bros. Discovery||1||1||5||0||2.57|
Warner Bros. Discovery presently has a consensus price target of $30.40, indicating a potential upside of 67.96%. AMC Networks has a consensus price target of $37.50, indicating a potential upside of 6.41%. Given Warner Bros. Discovery’s stronger consensus rating and higher possible upside, analysts plainly believe Warner Bros. Discovery is more favorable than AMC Networks.
Warner Bros. Discovery beats AMC Networks on 9 of the 14 factors compared between the two stocks.
About Warner Bros. Discovery (Get Rating)
Warner Bros. Discovery, Inc., a media company, provides content across various distribution platforms in approximately 50 languages worldwide. It also produces, develops, and distributes feature films, television, gaming, and other content in various physical and digital formats through basic networks, direct-to-consumer or theatrical, TV content, and games licensing. The company owns and operates various television networks under the Discovery Channel, HGTV, Food Network, TLC, Animal Planet, Investigation Discovery, Travel Channel, Science, MotorTrend, Discovery en Español, Discovery Familia, Eurosport, TVN, Discovery Kids, Discovery Family, American Heroes Channel, Destination America, Discovery Life, Magnolia Network, Cooking Channel, ID, the Oprah Winfrey Network, Eurosport, DMAX, and Discovery Home & Health brands, as well as other regional television networks. Its content spans genres, including survival, natural history, exploration, sports, general entertainment, home, food, travel, heroes, adventure, crime and investigation, health, and kids. The company also operates production studios that develop and produce content; and digital products and Websites. It provides content through various distribution platforms comprising pay-television, free-to-air and broadcast television, authenticated GO applications, digital distribution arrangements, content licensing agreements, and direct-to-consumer subscriptions, as well as various platforms that include brand- Aligned Websites, online streaming, mobile devices, video on demand, and broadband channels. Warner Bros. Discovery, Inc. is headquartered in New York, New York.
About AMC Networks (Get Rating)
AMC Networks Inc., an entertainment company, owns and operates a suite of video entertainment products that are delivered to audiences and a platform to distributors and advertisers in the United States and internationally. The company operates in two segments, Domestic Operations, and International and Other. The Domestic Operations segment operates various national programming networks, including the AMC, WE tv, BBC AMERICA, IFC, and SundanceTV; provides subscription streaming services comprising Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, as well as AMC+ and other streaming initiatives; and engages in film distribution business under the IFC Films name. This segment also produces and licenses original programming for various programming networks, as well as services the national programming networks. The International and Other segment operates a portfolio of channels under the AMCNI name; and production and comedy venues activities under the Levity name. AMC Networks Inc. was founded in 1980 and is headquartered in New York, New York.
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