TKO Group Holdings, Inc. (TKO) vs Warner Bros. Discovery, Inc. (WBD)

TKO Group Holdings, Inc. and Warner Bros. Discovery, Inc. are both Entertainment companies. Warner Bros. Discovery, Inc. is the larger, with a market value of $77.3B against $35.0B — 2.2× the size. Warner Bros. Discovery, Inc. has negative trailing earnings, so its P/E is not meaningful; TKO Group Holdings, Inc. trades at 61.1×. TKO Group Holdings, Inc. grew revenue faster over the last twelve months: 5.07% against −6.05%. TKO Group Holdings, Inc. has the higher net margin (4.33% vs −8.77%) and the higher return on invested capital (5.35% vs −1.27%). Across the 21 metrics below, TKO Group Holdings, Inc. leads on 17 and Warner Bros. Discovery, Inc. on 4.

Valuation

Metric TKO WBD Entertainment median
P/E 61.09 n/m 22.03
P/S 2.58 2.15 1.47
P/B 1.64 2.28 2.00
Price to free cash flow 8.17 35.55 16.60
EV/EBITDA 10.90 7.64 9.65
EV/Sales 3.20 2.94 1.76
Earnings yield 1.64% (4.12%) (0.67%)
Free cash flow yield 12.24% 2.81% 3.26%

Profitability

Metric TKO WBD Entertainment median
Gross margin 59.46% 47.25% 45.02%
Operating margin 18.82% (3.52%) 2.30%
Net margin 4.33% (8.77%) 0.00%
Free cash flow margin 31.55% 6.04% 1.56%
Return on equity 2.46% (8.88%) 0.00%
Return on assets 1.45% (3.18%) 0.00%
Return on invested capital 5.35% (1.27%) 0.00%

Growth

Metric TKO WBD Entertainment median
Revenue growth (TTM) 5.07% (6.05%) 5.07%
EPS growth (last fiscal year) 11,200.00% 106.28% —
Revenue growth, 5-year CAGR 37.19% 28.44% 10.25%
Net income growth, 5-year CAGR 8.20% (9.82%) 0.00%

Health

Metric TKO WBD Entertainment median
Debt to equity 0.58 0.94 0.46
Current ratio 1.28 0.78 0.86
Net debt to EBITDA 2.07 1.53 0.72

Dividend

Metric TKO WBD Entertainment median
Dividend yield 0.28% — 1.16%
Payout ratio 0.23 0.00 0.00

Size

Metric TKO WBD Entertainment median
Market cap 35.03b 77.30b 1.87b

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