News Corporation (NWS) vs Skydance Corporation (SKYD)

News Corporation and Skydance Corporation are both Entertainment companies. Skydance Corporation is the larger, with a market value of $41.1B against $14.8B — 2.8× the size. Skydance Corporation has negative trailing earnings, so its P/E is not meaningful; News Corporation trades at 26.0×. News Corporation grew revenue faster over the last twelve months: 7.82% against 1.23%. News Corporation has the higher net margin (6.76% vs −2.13%) and the lower return on invested capital (0.00% vs 2.62%). Both pay a dividend; Skydance Corporation yields more (2.44% vs 0.69%). Across the 22 metrics below, News Corporation leads on 11 and Skydance Corporation on 11.

Valuation

Metric NWS SKYD Entertainment median
P/E 26.03 n/m 24.17
P/S 1.72 0.31 1.36
P/B 1.71 0.71 1.75
Price to free cash flow 21.34 19.44 17.36
EV/EBITDA 9.84 1.36 8.85
EV/Sales 1.75 0.77 1.68
Earnings yield 3.84% (3.06%) (1.47%)
Free cash flow yield 4.69% 5.14% 3.98%

Profitability

Metric NWS SKYD Entertainment median
Gross margin 57.02% 33.33% 40.04%
Operating margin 0.00% 3.70% 2.30%
Net margin 6.76% (2.13%) 0.00%
Free cash flow margin 12.71% 1.61% 4.34%
Return on equity 6.69% (4.15%) 2.72%
Return on assets 4.03% (1.39%) 0.00%
Return on invested capital 0.00% 2.62% 0.55%

Growth

Metric NWS SKYD Entertainment median
Revenue growth (TTM) 7.82% 1.23% 8.28%
EPS growth (last fiscal year) (50.24%) 98.76% 9.67%
Revenue growth, 5-year CAGR (0.72%) 2.70% 10.07%
Net income growth, 5-year CAGR 11.67% 0.00% 0.00%

Health

Metric NWS SKYD Entertainment median
Debt to equity 0.22 1.13 0.46
Current ratio 1.62 1.04 1.00
Net debt to EBITDA (0.07) 0.63 0.97

Dividend

Metric NWS SKYD Entertainment median
Dividend yield 0.69% 2.44% 1.23%
Payout ratio 0.18 — 0.26

Size

Metric NWS SKYD Entertainment median
Market cap 14.77b 41.09b 3.27b

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