Critical Review: Warner Bros. Discovery (NASDAQ:WBD) versus WideOpenWest (NYSE:WOW)

WideOpenWest (NYSE:WOWGet Rating) and Warner Bros. Discovery (NASDAQ:WBDGet Rating) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
WideOpenWest 83.12% -12.36% -1.91%
Warner Bros. Discovery 10.53% 10.38% 3.96%

Earnings and Valuation

This table compares WideOpenWest and Warner Bros. Discovery’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WideOpenWest $1.03 billion 1.54 $770.50 million $9.23 1.97
Warner Bros. Discovery $12.19 billion 3.07 $1.01 billion $2.02 7.62

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

Analyst Recommendations

This is a summary of current ratings and price targets for WideOpenWest and Warner Bros. Discovery, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WideOpenWest 0 2 1 0 2.33
Warner Bros. Discovery 1 4 8 0 2.54

WideOpenWest presently has a consensus price target of $23.75, indicating a potential upside of 30.85%. Warner Bros. Discovery has a consensus price target of $23.92, indicating a potential upside of 55.34%. Given Warner Bros. Discovery’s stronger consensus rating and higher possible upside, analysts clearly believe Warner Bros. Discovery is more favorable than WideOpenWest.

Institutional and Insider Ownership

85.6% of WideOpenWest shares are owned by institutional investors. Comparatively, 35.5% of Warner Bros. Discovery shares are owned by institutional investors. 4.0% of WideOpenWest shares are owned by company insiders. Comparatively, 6.1% of Warner Bros. Discovery shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

WideOpenWest has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Warner Bros. Discovery has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Summary

Warner Bros. Discovery beats WideOpenWest on 10 of the 14 factors compared between the two stocks.

About WideOpenWest

(Get Rating)

WideOpenWest, Inc. provides high speed data, cable television, and digital telephony services to residential and business services customers in the United States. Its video services include basic cable services that comprise local broadcast television and local community programming; digital cable services; WOW tv+ that offers traditional cable video and cloud DVR functionality, voice remote with Google Assistant, and Netflix integration along with access to various streaming services and apps through the Google Play Store; and ultra-video products, as well as offers commercial-free movies, TV shows, sports, and other special event entertainment programs. The company's telephony services consist of local and long-distance telephone services; business telephony and data services include fiber based, office-to-office metro Ethernet, session initiated protocol trunking, colocation infrastructure, cloud computing, managed backup, and recovery services. As of December 31, 2021, it served approximately 1.9 million home and business, and 532,900 customers in the states of Alabama, Florida, Georgia, Michigan, South Carolina, and Tennessee. The company was formerly known as WideOpenWest Kite, Inc. and changed its name to WideOpenWest, Inc. in March 2017. WideOpenWest, Inc. was founded in 2001 and is based in Englewood, Colorado.

About Warner Bros. Discovery

(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.

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