News Corporation (NWS) vs Paramount Skydance Corporation (PSKY)

News Corporation and Paramount Skydance Corporation are both Entertainment companies. News Corporation is the larger, with a market value of $15.9B against $11.4B — 1.4× the size. Paramount Skydance Corporation has negative trailing earnings, so its P/E is not meaningful; News Corporation trades at 30.8×. News Corporation grew revenue faster over the last twelve months: 6.81% against 1.23%. News Corporation has the higher net margin (6.35% vs −2.13%) and the higher return on invested capital (7.82% vs 2.62%). Both pay a dividend; Paramount Skydance Corporation yields more (2.86% vs 0.77%). Across the 22 metrics below, News Corporation leads on 15 and Paramount Skydance Corporation on 7.

Valuation

Metric NWS PSKY Entertainment median
P/E 30.83 n/m 22.03
P/S 1.96 0.38 1.47
P/B 1.91 0.87 2.00
Price to free cash flow 21.79 23.67 16.60
EV/EBITDA 10.81 1.48 9.65
EV/Sales 1.95 0.84 1.76
Earnings yield 3.24% (1.54%) (0.67%)
Free cash flow yield 4.59% 4.22% 3.26%

Profitability

Metric NWS PSKY Entertainment median
Gross margin 56.89% 33.33% 45.02%
Operating margin 12.65% 3.70% 2.30%
Net margin 6.35% (2.13%) 0.00%
Free cash flow margin 8.98% 1.61% 1.56%
Return on equity 6.15% (4.15%) 0.00%
Return on assets 3.69% (1.39%) 0.00%
Return on invested capital 7.82% 2.62% 0.00%

Growth

Metric NWS PSKY Entertainment median
Revenue growth (TTM) 6.81% 1.23% 5.07%
EPS growth (last fiscal year) (50.24%) 98.76% —
Revenue growth, 5-year CAGR (0.72%) 2.70% 10.25%
Net income growth, 5-year CAGR 11.67% 0.00% 0.00%

Health

Metric NWS PSKY Entertainment median
Debt to equity 0.22 1.13 0.46
Current ratio 1.62 1.04 0.86
Net debt to EBITDA (0.07) 0.63 0.72

Dividend

Metric NWS PSKY Entertainment median
Dividend yield 0.77% 2.86% 1.16%
Payout ratio 0.77 0.22 0.00

Size

Metric NWS PSKY Entertainment median
Market cap 15.88b 11.41b 1.87b

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