TKO Group Holdings, Inc. (TKO)vsWarner Bros Discovery Inc (WBD)
TKO
TKO Group Holdings, Inc.
$173.88
+0.99%
COMMUNICATION SERVICES · Cap: $32.76B
WBD
Warner Bros Discovery Inc
$30.95
0.00%
COMMUNICATION SERVICES · Cap: $77.60B
Smart Verdict
WallStSmart Research — data-driven comparison
Warner Bros Discovery Inc generates 581% more annual revenue ($36.12B vs $5.30B). TKO leads profitability with a 4.3% profit margin vs -8.8%. TKO appears more attractively valued with a PEG of 1.59. TKO earns a higher WallStSmart Score of 57/100 (C).
TKO
Buy57
out of 100
Grade: C
WBD
Avoid33
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-23.7%
Fair Value
$170.12
Current Price
$173.88
$3.76 premium
Margin of Safety
+55.7%
Fair Value
$63.12
Current Price
$30.95
$32.17 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 32.4%
18.2% revenue growth
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
ROE of 6.8% — below average capital efficiency
4.3% margin — thin
Elevated debt levels
Expensive relative to growth rate
ROE of -9.6% — below average capital efficiency
Revenue declined 11.2%
Earnings declined 90.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : TKO
The strongest argument for TKO centers on Operating Margin, Revenue Growth. Revenue growth of 18.2% demonstrates continued momentum.
Bull Case : WBD
The strongest argument for WBD centers on Market Cap, Price/Book.
Bear Case : TKO
The primary concerns for TKO are PEG Ratio, Return on Equity, Profit Margin. A P/E of 60.5x leaves little room for execution misses. Thin 4.3% margins leave little buffer for downturns.
Bear Case : WBD
The primary concerns for WBD are PEG Ratio, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
TKO profiles as a growth stock while WBD is a turnaround play — different risk/reward profiles.
WBD carries more volatility with a beta of 1.54 — expect wider price swings.
TKO is growing revenue faster at 18.2% — sustainability is the question.
WBD generates stronger free cash flow (572M), providing more financial flexibility.
Bottom Line
TKO scores higher overall (57/100 vs 33/100) and 18.2% revenue growth. WBD offers better value entry with a 55.7% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
TKO Group Holdings, Inc.
COMMUNICATION SERVICES · ENTERTAINMENT · USA
TKO Group Holdings, Inc. is a sports and entertainment company. The company is headquartered in New York, New York.
Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
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