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AMX vs. WMG: A Head-to-Head Stock Comparison

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Here’s a clear look at AMX and WMG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AMX’s market capitalization of 55.37 billion USD is substantially larger than WMG’s 15.32 billion USD, indicating a significant difference in their market valuations.

WMG carries a higher beta at 1.24, indicating it’s more sensitive to market moves, while AMX (beta: 0.27) exhibits greater stability.

AMX trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, WMG is a standard domestic listing.

SymbolAMXWMG
Company NameAmérica Móvil, S.A.B. de C.V.Warner Music Group Corp.
CountryMXUS
SectorCommunication ServicesCommunication Services
IndustryTelecommunications ServicesEntertainment
CEODaniel Hajj AboumradRobert Kyncl
Price18.09 USD29.39 USD
Market Cap55.37 billion USD15.32 billion USD
Beta0.271.24
ExchangeNYSENASDAQ
IPO DateFebruary 12, 2001June 3, 2020
ADRYesNo

Historical Performance

This chart compares the performance of AMX and WMG by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AMX vs. WMG: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AMX

5.41%

Telecommunications Services Industry

Max
36.08%
Q3
16.39%
Median
6.66%
Q1
-5.80%
Min
-26.90%

AMX’s Return on Equity of 5.41% is on par with the norm for the Telecommunications Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

WMG

85.57%

Entertainment Industry

Max
52.68%
Q3
19.21%
Median
2.19%
Q1
-9.02%
Min
-38.07%

WMG’s Return on Equity of 85.57% is exceptionally high, placing it well beyond the typical range for the Entertainment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AMX vs. WMG: A comparison of their ROE against their respective Telecommunications Services and Entertainment industry benchmarks.

Return on Invested Capital

AMX

5.23%

Telecommunications Services Industry

Max
13.02%
Q3
6.76%
Median
4.03%
Q1
0.50%
Min
-4.79%

AMX’s Return on Invested Capital of 5.23% is in line with the norm for the Telecommunications Services industry, reflecting a standard level of efficiency in generating profits from its capital base.

WMG

9.62%

Entertainment Industry

Max
22.23%
Q3
7.94%
Median
4.38%
Q1
-1.64%
Min
-11.28%

In the upper quartile for the Entertainment industry, WMG’s Return on Invested Capital of 9.62% signifies a highly effective use of its capital to generate profits when compared to its peers.

AMX vs. WMG: A comparison of their ROIC against their respective Telecommunications Services and Entertainment industry benchmarks.

Net Profit Margin

AMX

3.64%

Telecommunications Services Industry

Max
20.59%
Q3
10.07%
Median
3.00%
Q1
-4.53%
Min
-18.76%

AMX’s Net Profit Margin of 3.64% is aligned with the median group of its peers in the Telecommunications Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

WMG

7.14%

Entertainment Industry

Max
23.09%
Q3
7.10%
Median
4.00%
Q1
-5.55%
Min
-19.16%

A Net Profit Margin of 7.14% places WMG in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

AMX vs. WMG: A comparison of their Net Profit Margin against their respective Telecommunications Services and Entertainment industry benchmarks.

Operating Profit Margin

AMX

21.67%

Telecommunications Services Industry

Max
37.46%
Q3
22.75%
Median
10.32%
Q1
0.62%
Min
-16.66%

AMX’s Operating Profit Margin of 21.67% is around the midpoint for the Telecommunications Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

WMG

11.56%

Entertainment Industry

Max
27.65%
Q3
14.60%
Median
8.91%
Q1
-1.50%
Min
-17.48%

WMG’s Operating Profit Margin of 11.56% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

AMX vs. WMG: A comparison of their Operating Margin against their respective Telecommunications Services and Entertainment industry benchmarks.

Profitability at a Glance

SymbolAMXWMG
Return on Equity (TTM)5.41%85.57%
Return on Assets (TTM)1.29%4.72%
Return on Invested Capital (TTM)5.23%9.62%
Net Profit Margin (TTM)3.64%7.14%
Operating Profit Margin (TTM)21.67%11.56%
Gross Profit Margin (TTM)62.45%46.81%

Financial Strength

Current Ratio

AMX

0.71

Telecommunications Services Industry

Max
2.27
Q3
1.38
Median
0.96
Q1
0.66
Min
0.36

AMX’s Current Ratio of 0.71 aligns with the median group of the Telecommunications Services industry, indicating that its short-term liquidity is in line with its sector peers.

WMG

0.66

Entertainment Industry

Max
2.86
Q3
1.51
Median
0.84
Q1
0.46
Min
0.26

WMG’s Current Ratio of 0.66 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

AMX vs. WMG: A comparison of their Current Ratio against their respective Telecommunications Services and Entertainment industry benchmarks.

Debt-to-Equity Ratio

AMX

1.82

Telecommunications Services Industry

Max
4.64
Q3
2.32
Median
1.35
Q1
0.63
Min
0.00

AMX’s Debt-to-Equity Ratio of 1.82 is typical for the Telecommunications Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

WMG

8.03

Entertainment Industry

Max
10.61
Q3
5.84
Median
0.94
Q1
0.71
Min
0.01

WMG’s leverage is in the upper quartile of the Entertainment industry, with a Debt-to-Equity Ratio of 8.03. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

AMX vs. WMG: A comparison of their D/E Ratio against their respective Telecommunications Services and Entertainment industry benchmarks.

Interest Coverage Ratio

AMX

4.00

Telecommunications Services Industry

Max
8.83
Q3
4.35
Median
2.26
Q1
0.11
Min
-1.74

AMX’s Interest Coverage Ratio of 4.00 is positioned comfortably within the norm for the Telecommunications Services industry, indicating a standard and healthy capacity to cover its interest payments.

WMG

4.69

Entertainment Industry

Max
7.49
Q3
3.71
Median
1.58
Q1
-0.42
Min
-5.05

WMG’s Interest Coverage Ratio of 4.69 is in the upper quartile for the Entertainment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AMX vs. WMG: A comparison of their Interest Coverage against their respective Telecommunications Services and Entertainment industry benchmarks.

Financial Strength at a Glance

SymbolAMXWMG
Current Ratio (TTM)0.710.66
Quick Ratio (TTM)0.660.64
Debt-to-Equity Ratio (TTM)1.828.03
Debt-to-Asset Ratio (TTM)0.430.48
Net Debt-to-EBITDA Ratio (TTM)3.723.13
Interest Coverage Ratio (TTM)4.004.69

Growth

The following charts compare key year-over-year (YoY) growth metrics for AMX and WMG. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AMX vs. WMG: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AMX vs. WMG: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AMX vs. WMG: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AMX

2.83%

Telecommunications Services Industry

Max
128.28%
Q3
6.07%
Median
1.86%
Q1
0.00%
Min
0.00%

AMX’s Dividend Yield of 2.83% is consistent with its peers in the Telecommunications Services industry, providing a dividend return that is standard for its sector.

WMG

2.45%

Entertainment Industry

Max
7.41%
Q3
0.95%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.45%, WMG offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

AMX vs. WMG: A comparison of their Dividend Yield against their respective Telecommunications Services and Entertainment industry benchmarks.

Dividend Payout Ratio

AMX

59.04%

Telecommunications Services Industry

Max
146.49%
Q3
63.59%
Median
29.65%
Q1
0.00%
Min
0.00%

AMX’s Dividend Payout Ratio of 59.04% is within the typical range for the Telecommunications Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

WMG

82.30%

Entertainment Industry

Max
82.73%
Q3
7.88%
Median
0.00%
Q1
0.00%
Min
0.00%

WMG’s Dividend Payout Ratio of 82.30% is in the upper quartile for the Entertainment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

AMX vs. WMG: A comparison of their Payout Ratio against their respective Telecommunications Services and Entertainment industry benchmarks.

Dividend at a Glance

SymbolAMXWMG
Dividend Yield (TTM)2.83%2.45%
Dividend Payout Ratio (TTM)59.04%82.30%

Valuation

Price-to-Earnings Ratio

AMX

43.05

Telecommunications Services Industry

Max
27.65
Q3
20.70
Median
15.25
Q1
10.05
Min
5.86

At 43.05, AMX’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Telecommunications Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

WMG

33.83

Entertainment Industry

Max
85.23
Q3
70.18
Median
35.61
Q1
19.80
Min
6.95

WMG’s P/E Ratio of 33.83 is within the middle range for the Entertainment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AMX vs. WMG: A comparison of their P/E Ratio against their respective Telecommunications Services and Entertainment industry benchmarks.

Forward P/E to Growth Ratio

AMX

3.35

Telecommunications Services Industry

Max
3.27
Q3
2.93
Median
1.35
Q1
0.64
Min
0.01

AMX’s Forward PEG Ratio of 3.35 is exceptionally high for the Telecommunications Services industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

WMG

2.76

Entertainment Industry

Max
5.10
Q3
2.63
Median
1.23
Q1
0.35
Min
0.06

A Forward PEG Ratio of 2.76 places WMG in the upper quartile for the Entertainment industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

AMX vs. WMG: A comparison of their Forward PEG Ratio against their respective Telecommunications Services and Entertainment industry benchmarks.

Price-to-Sales Ratio

AMX

1.55

Telecommunications Services Industry

Max
3.23
Q3
1.83
Median
1.32
Q1
0.83
Min
0.11

AMX’s P/S Ratio of 1.55 aligns with the market consensus for the Telecommunications Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

WMG

2.42

Entertainment Industry

Max
4.71
Q3
2.84
Median
1.46
Q1
0.70
Min
0.27

WMG’s P/S Ratio of 2.42 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AMX vs. WMG: A comparison of their P/S Ratio against their respective Telecommunications Services and Entertainment industry benchmarks.

Price-to-Book Ratio

AMX

2.33

Telecommunications Services Industry

Max
4.39
Q3
2.65
Median
1.82
Q1
1.09
Min
0.29

AMX’s P/B Ratio of 2.33 is within the conventional range for the Telecommunications Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

WMG

26.97

Entertainment Industry

Max
11.55
Q3
8.75
Median
2.23
Q1
1.18
Min
0.51

The P/B Ratio is often not a primary valuation metric for the Entertainment industry.

AMX vs. WMG: A comparison of their P/B Ratio against their respective Telecommunications Services and Entertainment industry benchmarks.

Valuation at a Glance

SymbolAMXWMG
Price-to-Earnings Ratio (P/E, TTM)43.0533.83
Forward PEG Ratio (TTM)3.352.76
Price-to-Sales Ratio (P/S, TTM)1.552.42
Price-to-Book Ratio (P/B, TTM)2.3326.97
Price-to-Free Cash Flow Ratio (P/FCF, TTM)18.9426.69
EV-to-EBITDA (TTM)8.4515.35
EV-to-Sales (TTM)2.783.04