Financial Analysis: STUB (NYSE:STUB) vs. Warner Bros. Discovery (NASDAQ:WBD)

Warner Bros. Discovery (NASDAQ:WBD) and STUB (NYSE:STUB) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Institutional & Insider Ownership

60.0% of Warner Bros. Discovery shares are held by institutional investors. 0.7% of Warner Bros. Discovery shares are held by company insiders. Comparatively, 31.0% of STUB shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Warner Bros. Discovery and STUB”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warner Bros. Discovery	$37.30 billion	1.87	$727.00 million	($1.27)	-21.89
STUB	$1.75 billion	1.30	-$1.91 billion	($5.74)	-1.03

Warner Bros. Discovery has higher revenue and earnings than STUB. Warner Bros. Discovery is trading at a lower price-to-earnings ratio than STUB, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Warner Bros. Discovery and STUB, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warner Bros. Discovery	2	13	6	2	2.35
STUB	2	6	6	0	2.29

Warner Bros. Discovery currently has a consensus price target of $28.22, indicating a potential upside of 1.51%. STUB has a consensus price target of $10.33, indicating a potential upside of 74.11%. Given STUB’s higher probable upside, analysts clearly believe STUB is more favorable than Warner Bros. Discovery.

Profitability

This table compares Warner Bros. Discovery and STUB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warner Bros. Discovery	-8.77%	-8.91%	-3.20%
STUB	-93.54%	-9.50%	-2.67%

Summary

Warner Bros. Discovery beats STUB on 9 of the 13 factors compared between the two stocks.

About Warner Bros. Discovery

Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming. The Network segment comprises domestic and international television networks. The DTC segment offers premium pay-tv and streaming services. In addition, the company offers portfolio of content, brands, and franchises across television, film, streaming, and gaming under the Warner Bros. Motion Picture Group, Warner Bros. Television Group, DC, HBO, HBO Max, Max, Discovery Channel, discovery+, CNN, HGTV, Food Network, TNT Sports, TBS, TLC, OWN, Warner Bros. Games, Batman, Superman, Wonder Woman, Harry Potter, Looney Tunes, Hanna-Barbera, Game of Thrones, and The Lord of the Rings brands. Further, it provides content through distribution platforms, including linear network, free-to-air, and broadcast television; authenticated GO applications, digital distribution arrangements, content licensing arrangements, and direct-to-consumer subscription products. Warner Bros. Discovery, Inc. was incorporated in 2008 and is headquartered in New York, New York.

About STUB

Stubhub Holdings Inc., through its subsidiaries, provides an online marketplace to buy and sell tickets for sports, concerts, theater, festivals and other live events. Stubhub Holdings Inc. is based in NEW YORK.