Fox Corporation (FOXA) vs Warner Bros. Discovery, Inc. (WBD)

Fox Corporation and Warner Bros. Discovery, Inc. are both Entertainment companies. Warner Bros. Discovery, Inc. is the larger, with a market value of $77.3B against $25.5B — 3.0× the size. Warner Bros. Discovery, Inc. has negative trailing earnings, so its P/E is not meaningful; Fox Corporation trades at 16.5×. Fox Corporation grew revenue faster over the last twelve months: 5.07% against −6.05%. Fox Corporation has the higher net margin (9.84% vs −8.77%) and the higher return on invested capital (15.5% vs −1.27%). Across the 21 metrics below, Fox Corporation leads on 16 and Warner Bros. Discovery, Inc. on 5.

Valuation

Metric FOXA WBD Entertainment median
P/E 16.47 n/m 22.03
P/S 1.59 2.15 1.47
P/B 2.32 2.28 2.00
Price to free cash flow 18.52 35.55 16.60
EV/EBITDA 7.73 7.64 9.65
EV/Sales 1.76 2.94 1.76
Earnings yield 6.07% (4.12%) (0.67%)
Free cash flow yield 5.40% 2.81% 3.26%

Profitability

Metric FOXA WBD Entertainment median
Gross margin 36.63% 47.25% 45.02%
Operating margin 20.41% (3.52%) 2.30%
Net margin 9.84% (8.77%) 0.00%
Free cash flow margin 8.57% 6.04% 1.56%
Return on equity 14.16% (8.88%) 0.00%
Return on assets 7.38% (3.18%) 0.00%
Return on invested capital 15.46% (1.27%) 0.00%

Growth

Metric FOXA WBD Entertainment median
Revenue growth (TTM) 5.07% (6.05%) 5.07%
EPS growth (last fiscal year) (21.79%) 106.28% —
Revenue growth, 5-year CAGR 5.82% 28.44% 10.25%
Net income growth, 5-year CAGR (4.76%) (9.82%) 0.00%

Health

Metric FOXA WBD Entertainment median
Debt to equity 0.56 0.94 0.46
Current ratio 3.17 0.78 0.86
Net debt to EBITDA 0.61 1.53 0.72

Dividend

Metric FOXA WBD Entertainment median
Dividend yield 1.83% — 1.16%
Payout ratio 0.21 0.00 0.00

Size

Metric FOXA WBD Entertainment median
Market cap 25.46b 77.30b 1.87b

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