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Financial Review: Warner Bros. Discovery (NASDAQ:WBD) and Rogers Communications (NYSE:RCI)


Warner Bros. Discovery (NASDAQ:WBD – Get Rating) and Rogers Communications (NYSE:RCI – Get Rating) are both large-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Warner Bros. Discovery and Rogers Communications, as provided by MarketBeat.com.

Sell ​​Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Warner Bros Discovery 1 3 6 0 2.50
Rogers Communications 0 1 7 0 2.88

Warner Bros. Discovery currently has a consensus target price of $28.67, indicating a potential upside of 117.67%. Rogers Communications has a consensus target price of $80.63, indicating a potential upside of 68.39%. Given Warner Bros. Discovery’s higher possible upside, analysts clearly believe Warner Bros. Discovery is more favorable than Rogers Communications.

Profitability

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

Net Margins Return on Equity Return on Assets
Warner Bros Discovery 10.53% 10.38% 3.96%
Rogers Communications 10.73% 17.67% 4.28%

Insider & Institutional Ownership

35.5% of Warner Bros. Discovery shares are owned by institutional investors. Comparatively, 41.7% of Rogers Communications shares are owned by institutional investors. 6.1% of Warner Bros. Discovery shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Warner Bros. Discovery and Rogers Communications’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Warner Bros Discovery $12.19 billion 2.62 $1.01 billion $2.02 6.52
Rogers Communications $11.69 billion 2.07 $1.24 billion $2.48 19.31

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

Volatility & Risk

Warner Bros. Discovery has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Rogers Communications has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Summary

Rogers Communications beats Warner Bros. Discovery on 9 of the 14 factors compared between the two stocks.

Warner Bros. Discovery Company Profile (GetRating)

Warner Bros. Discovery, Inc., a media company, provides content across various distribution platforms in approximately 50 languages ​​worldwide. It also produces, develops, and distributes feature films, television, gaming, and other content in various physical and digital formats through basic networks, direct-to-consumer or theatrical, TV content, and games licensing. The company owns and operates various television networks under the Discovery Channel, HGTV, Food Network, TLC, Animal Planet, Investigation Discovery, Travel Channel, Science, MotorTrend, Discovery en Español, Discovery Familia, Eurosport, TVN, Discovery Kids, Discovery Family, American Heroes Channel, Destination America, Discovery Life, Magnolia Network, Cooking Channel, ID, the Oprah Winfrey Network, Eurosport, DMAX, and Discovery Home & Health brands, as well as other regional television networks. Its content spans genres, including survival, natural history, exploration, sports, general entertainment, home, food, travel, heroes, adventure, crime and investigation, health, and kids. The company also operates production studios that develop and produce content; and digital products and Websites. It provides content through various distribution platforms comprising pay-television, free-to-air and broadcast television, authenticated GO applications, digital distribution arrangements, content licensing agreements, and direct-to-consumer subscriptions, as well as various platforms that include brand- aligned Websites, online streaming, mobile devices, video on demand, and broadband channels. Warner Bros. Discovery, Inc. is headquartered in New York, New York.

Rogers Communications Company Profile (GetRating)

Rogers Communications Inc. operates as a communications and media company in Canada. It operates through three segments: Wireless, Cable, and Media. The company offers mobile Internet access, wireless voice and enhanced voice, device and accessory financing, wireless home phone, device protection, e-mail, global voice and data roaming, bridging landline, machine-to-machine and Internet of Things solutions, and advanced wireless solutions for businesses, as well as device delivery services; and postpaid and prepaid services under the Rogers, Fido, and chatr brands to approximately 11.3 million subscribers. It also provides Internet and WiFi services; smart home monitoring services, such as monitoring, security, automation, energy efficiency, and smart control through a smartphone app. In addition, the company offers local and network TV; on-demand television; cloud-based digital video recorders; voice-activated remote controls, and integrated apps; personal video recorders; linear and time-shifted programming; digital specialty channels; 4K television programming; and televised content on smartphones, tablets, and personal computers, as well as operates Ignite TV and Ignite TV app. Further, it provides residential and small business local telephony services; calling features, such as voicemail, call waiting, and long distance; voice, data networking, Internet protocol, and Ethernet services; private networking, Internet, IP voice, and cloud solutions; optical wave and multi-protocol label switching services; IT and network technologies; and cable access network services. The company also owns the Toronto Blue Jays and the Rogers Center event venue; and operates Sportsnet ONE, Sportsnet 360, Sportsnet World, Citytv, OMNI, FX (Canada), FXX (Canada), and OLN television networks, as well as 55 AM and FM radio stations. The company was founded in 1960 and is headquartered in Toronto, Canada.



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