WallStSmart

Sea Ltd (SE)vsWarner Bros Discovery Inc (WBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 63% more annual revenue ($37.30B vs $22.94B). SE leads profitability with a 6.9% profit margin vs 1.9%. SE appears more attractively valued with a PEG of 0.56. SE earns a higher WallStSmart Score of 70/100 (B-).

SE

Strong Buy

70

out of 100

Grade: B-

Growth: 10.0Profit: 6.0Value: 8.7Quality: 5.5
Piotroski: 6/9

WBD

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 6.0Value: 2.0Quality: 4.3
Piotroski: 4/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SEUndervalued (+2.9%)

Margin of Safety

+2.9%

Fair Value

$117.94

Current Price

$78.31

$39.63 discount

UndervaluedFair: $117.94Overvalued
WBDSignificantly Overvalued (-106.3%)

Margin of Safety

-106.3%

Fair Value

$13.57

Current Price

$27.28

$13.71 premium

UndervaluedFair: $13.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SE4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
38.4%10/10

Revenue surging 38.4% year-over-year

EPS GrowthGrowth
58.5%10/10

Earnings expanding 58.5% YoY

PEG RatioValuation
0.568/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.04B8/10

Generating 1.0B in free cash flow

WBD4 strengths · Avg: 8.8/10
EPS GrowthGrowth
226.7%10/10

Earnings expanding 226.7% YoY

Market CapQuality
$68.03B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.38B8/10

Generating 1.4B in free cash flow

Areas to Watch

SE2 concerns · Avg: 3.5/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

WBD4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.1%3/10

ROE of 2.1% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

PEG RatioValuation
216.922/10

Expensive relative to growth rate

P/E RatioValuation
94.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : SE

The strongest argument for SE centers on Revenue Growth, EPS Growth, PEG Ratio. Revenue growth of 38.4% demonstrates continued momentum. PEG of 0.56 suggests the stock is reasonably priced for its growth.

Bull Case : WBD

The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.

Bear Case : SE

The primary concerns for SE are P/E Ratio, Profit Margin.

Bear Case : WBD

The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. A P/E of 94.5x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

SE profiles as a hypergrowth stock while WBD is a value play — different risk/reward profiles.

WBD carries more volatility with a beta of 1.68 — expect wider price swings.

SE is growing revenue faster at 38.4% — sustainability is the question.

WBD generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

SE scores higher overall (70/100 vs 51/100) and 38.4% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Bros. The company is headquartered in New York, New York.

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