Critical Survey: Warner Bros. Discovery (NASDAQ:WBD) versus ITV (OTCMKTS:ITVPY)

Warner Bros. Discovery (NASDAQ:WBDGet Rating) and ITV (OTCMKTS:ITVPYGet Rating) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Risk & Volatility

Warner Bros. Discovery has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, ITV has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Valuation & Earnings

This table compares Warner Bros. Discovery and ITV’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 $12.19 billion 2.83 $1.01 billion $2.02 7.04
ITV $3.57 billion 0.90 $365.94 million N/A N/A

Warner Bros. Discovery has higher revenue and earnings than ITV.

Profitability

This table compares Warner Bros. Discovery and ITV’s 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%
ITV N/A N/A N/A

Insider and Institutional Ownership

35.5% of Warner Bros. Discovery shares are held by institutional investors. Comparatively, 0.1% of ITV shares are held by institutional investors. 6.1% of Warner Bros. Discovery shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Warner Bros. Discovery and ITV, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Warner Bros. Discovery 1 3 5 0 2.44
ITV 1 4 3 0 2.25

Warner Bros. Discovery presently has a consensus target price of $28.67, indicating a potential upside of 101.59%. ITV has a consensus target price of $55.43, indicating a potential upside of 595.42%. Given ITV’s higher probable upside, analysts clearly believe ITV is more favorable than Warner Bros. Discovery.

Summary

Warner Bros. Discovery beats ITV on 10 of the 12 factors compared between the two stocks.

Warner Bros. Discovery Company Profile (Get Rating)

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 EspaƱol, 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.

ITV Company Profile (Get Rating)

ITV plc, an integrated producer broadcaster, creates, owns, and distributes content on various platforms worldwide. It operates through Media & Entertainment, and ITV Studios segments. The Media & Entertainment segment broadcasts various contents on its family of free-to-air channels, including ITV, ITV2, ITV3, ITV4, ITVBe, ITV Encore, CITV, ITV Breakfast, CITV Breakfast, and various related +1 and HD equivalents; and offers television advertising services. It also delivers content through linear television broadcasting, as well as on the ITV Hub, catch up services on pay platforms, and through direct content deals. In addition, this segment offers online advertising, HD digital channel on pay platform, and ITV Choice subscription services, as well as licenses DTT Multiplex A. The ITV Studios segment creates and produces programs and formats that include drama, entertainment, and factual entertainment for its own channels and other broadcasters. It also operates as an unscripted independent producer of content in the United States; and produces content for local broadcasters and international OTT platforms in Australia, Germany, France, Italy, the Netherlands, Sweden, Norway, Finland, and Denmark. In addition, this segment engages in formats and distribution ITV's finished programmes, and formats and third-party content internationally, as well as finances productions. The company also engages in the development of platform, broadband, transactional, and mobile services; operation of digital television channels; operation of Freeview Multiplex A; rights ownership and distribution of television programs and films; and scheduling and commissioning of television programs. ITV plc was founded in 1955 is based in London, the United Kingdom.

Want More Great Investing Ideas?

Receive News & Ratings for Warner Bros. Discovery Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Warner Bros. Discovery and related companies with MarketBeat.com's FREE daily email newsletter.