The Walt Disney Company (DIS) vs Warner Bros. Discovery, Inc. (WBD)

The Walt Disney Company and Warner Bros. Discovery, Inc. are both Entertainment companies. The Walt Disney Company is the larger, with a market value of $182.1B against $77.3B — 2.4× the size. Warner Bros. Discovery, Inc. has negative trailing earnings, so its P/E is not meaningful; The Walt Disney Company trades at 21.8×. The Walt Disney Company grew revenue faster over the last twelve months: 4.58% against −6.05%. The Walt Disney Company has the higher net margin (8.70% vs −8.77%) and the higher return on invested capital (5.35% vs −1.27%). Across the 21 metrics below, The Walt Disney Company leads on 16 and Warner Bros. Discovery, Inc. on 5.

Valuation

Metric DIS WBD Entertainment median
P/E 21.84 n/m 22.03
P/S 1.87 2.15 1.47
P/B 1.58 2.28 2.00
Price to free cash flow 22.25 35.55 16.60
EV/EBITDA 11.02 7.64 9.65
EV/Sales 2.28 2.94 1.76
Earnings yield 4.58% (4.12%) (0.67%)
Free cash flow yield 4.50% 2.81% 3.26%

Profitability

Metric DIS WBD Entertainment median
Gross margin 37.60% 47.25% 45.02%
Operating margin 13.66% (3.52%) 2.30%
Net margin 8.70% (8.77%) 0.00%
Free cash flow margin 8.39% 6.04% 1.56%
Return on equity 7.46% (8.88%) 0.00%
Return on assets 4.29% (3.18%) 0.00%
Return on invested capital 5.35% (1.27%) 0.00%

Growth

Metric DIS WBD Entertainment median
Revenue growth (TTM) 4.58% (6.05%) 5.07%
EPS growth (last fiscal year) 151.84% 106.28% —
Revenue growth, 5-year CAGR 7.63% 28.44% 10.25%
Net income growth, 5-year CAGR 0.00% (9.82%) 0.00%

Health

Metric DIS WBD Entertainment median
Debt to equity 0.39 0.94 0.46
Current ratio 0.71 0.78 0.86
Net debt to EBITDA 1.89 1.53 0.72

Dividend

Metric DIS WBD Entertainment median
Dividend yield 0.54% — 1.16%
Payout ratio 0.00 0.00 0.00

Size

Metric DIS WBD Entertainment median
Market cap 182.11b 77.30b 1.87b

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