Fox Corporation (FOX) vs Warner Music Group Corp. (WMG)

Fox Corporation and Warner Music Group Corp. are both Entertainment companies. Fox Corporation is the larger, with a market value of $35.7B against $16.6B — 2.2× the size. Fox Corporation trades at the lower P/E: 12.3× against 24.7×. Warner Music Group Corp. grew revenue faster over the last twelve months: 12.9% against 9.01%. Fox Corporation has the higher net margin (11.3% vs 9.20%) and the higher return on invested capital (17.3% vs 12.4%). Both pay a dividend; Warner Music Group Corp. yields more (2.43% vs 0.97%). Across the 23 metrics below, Fox Corporation leads on 16 and Warner Music Group Corp. on 7.

Valuation

Metric FOX WMG Entertainment median
P/E 12.28 24.74 22.59
P/S 1.38 2.26 1.37
P/B 1.97 17.34 1.76
Price to free cash flow 11.22 19.76 17.15
EV/EBITDA 6.11 14.63 8.42
EV/Sales 1.53 2.84 1.62
Earnings yield 8.14% 4.04% (0.98%)
Free cash flow yield 8.91% 5.06% 4.08%

Profitability

Metric FOX WMG Entertainment median
Gross margin 38.01% 45.77% 45.28%
Operating margin 22.56% 13.69% 2.50%
Net margin 11.30% 9.20% (0.34%)
Free cash flow margin 12.28% 11.45% 3.04%
Return on equity 16.31% 76.15% 1.68%
Return on assets 8.85% 6.55% 0.00%
Return on invested capital 17.30% 12.39% 1.09%

Growth

Metric FOX WMG Entertainment median
Revenue growth (TTM) 9.01% 12.91% 8.51%
EPS growth (last fiscal year) (21.79%) (16.87%) 9.47%
Revenue growth, 5-year CAGR 5.82% 8.49% 9.28%
Net income growth, 5-year CAGR (4.76%) 0.00% 0.00%

Health

Metric FOX WMG Entertainment median
Debt to equity 0.53 4.94 0.46
Current ratio 3.79 0.73 1.07
Net debt to EBITDA 0.61 3.58 1.13

Dividend

Metric FOX WMG Entertainment median
Dividend yield 0.97% 2.43% 1.22%
Payout ratio 0.12 0.61 0.26

Size

Metric FOX WMG Entertainment median
Market cap 35.71b 16.57b 3.37b

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