NBIS vs. WMG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at NBIS and WMG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | NBIS | WMG |
|---|---|---|
| Company Name | -- | Warner Music Group Corp. |
| Country | Netherlands | United States |
| GICS Sector | Information Technology | Communication Services |
| GICS Industry | Software | Entertainment |
| Market Capitalization | 16.47 billion USD | 17.60 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | October 21, 2024 | June 3, 2020 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of NBIS 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.
Historical Performance at a Glance
| Symbol | NBIS | WMG |
|---|---|---|
| 5-Day Price Return | -4.91% | 4.33% |
| 13-Week Price Return | 77.24% | 27.05% |
| 26-Week Price Return | 43.50% | -5.92% |
| 52-Week Price Return | -- | 16.09% |
| Month-to-Date Return | 26.73% | 15.41% |
| Year-to-Date Return | 149.03% | 8.94% |
| 10-Day Avg. Volume | 13.43M | 2.39M |
| 3-Month Avg. Volume | 12.57M | 1.79M |
| 3-Month Volatility | 86.53% | 24.45% |
| Beta | 0.32 | 1.31 |
Profitability
Return on Equity (TTM)
NBIS
7.44%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
NBIS’s Return on Equity of 7.44% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
WMG
53.54%
Entertainment Industry
- Max
- 42.50%
- Q3
- 22.75%
- Median
- 12.88%
- Q1
- 7.15%
- Min
- -6.84%
WMG’s Return on Equity of 53.54% 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.
Net Profit Margin (TTM)
NBIS
-55.23%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
NBIS has a negative Net Profit Margin of -55.23%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
WMG
4.59%
Entertainment Industry
- Max
- 45.25%
- Q3
- 23.93%
- Median
- 14.60%
- Q1
- 4.89%
- Min
- -22.94%
Falling into the lower quartile for the Entertainment industry, WMG’s Net Profit Margin of 4.59% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin (TTM)
NBIS
-37.08%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
NBIS has a negative Operating Profit Margin of -37.08%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
WMG
10.73%
Entertainment Industry
- Max
- 46.83%
- Q3
- 28.87%
- Median
- 15.26%
- Q1
- 8.95%
- Min
- -5.53%
WMG’s Operating Profit Margin of 10.73% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | NBIS | WMG |
|---|---|---|
| Return on Equity (TTM) | 7.44% | 53.54% |
| Return on Assets (TTM) | 6.44% | 3.16% |
| Net Profit Margin (TTM) | -55.23% | 4.59% |
| Operating Profit Margin (TTM) | -37.08% | 10.73% |
| Gross Profit Margin (TTM) | 4.01% | 46.64% |
Financial Strength
Current Ratio (MRQ)
NBIS
14.71
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
NBIS’s Current Ratio of 14.71 is exceptionally high, placing it well outside the typical range for the Software industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
WMG
0.66
Entertainment Industry
- Max
- 6.80
- Q3
- 3.77
- Median
- 1.87
- Q1
- 0.86
- Min
- 0.39
WMG’s Current Ratio of 0.66 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
NBIS
0.26
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
NBIS’s Debt-to-Equity Ratio of 0.26 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
WMG
7.41
Entertainment Industry
- Max
- 1.65
- Q3
- 0.71
- Median
- 0.14
- Q1
- 0.04
- Min
- 0.00
With a Debt-to-Equity Ratio of 7.41, WMG operates with exceptionally high leverage compared to the Entertainment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
NBIS
-43.61
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
NBIS has a negative Interest Coverage Ratio of -43.61. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
WMG
4.73
Entertainment Industry
- Max
- 62.11
- Q3
- 31.19
- Median
- 7.50
- Q1
- 2.02
- Min
- -6.33
WMG’s Interest Coverage Ratio of 4.73 is positioned comfortably within the norm for the Entertainment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | NBIS | WMG |
|---|---|---|
| Current Ratio (MRQ) | 14.71 | 0.66 |
| Quick Ratio (MRQ) | 14.51 | 0.45 |
| Debt-to-Equity Ratio (MRQ) | 0.26 | 7.41 |
| Interest Coverage Ratio (TTM) | -43.61 | 4.73 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
NBIS
0.00%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NBIS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
WMG
2.42%
Entertainment Industry
- Max
- 2.54%
- Q3
- 1.29%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.42%, WMG offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
NBIS
0.00%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NBIS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
WMG
82.30%
Entertainment Industry
- Max
- 82.30%
- Q3
- 45.76%
- Median
- 29.16%
- 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.
Dividend at a Glance
| Symbol | NBIS | WMG |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.42% |
| Dividend Payout Ratio (TTM) | 0.00% | 82.30% |
Valuation
Price-to-Earnings Ratio (TTM)
NBIS
65.90
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
NBIS’s P/E Ratio of 65.90 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
WMG
52.44
Entertainment Industry
- Max
- 53.51
- Q3
- 45.31
- Median
- 33.16
- Q1
- 18.21
- Min
- 3.89
A P/E Ratio of 52.44 places WMG in the upper quartile for the Entertainment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
NBIS
13.77
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
NBIS’s P/S Ratio of 13.77 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
WMG
2.41
Entertainment Industry
- Max
- 12.81
- Q3
- 7.20
- Median
- 4.68
- Q1
- 3.32
- Min
- 0.79
In the lower quartile for the Entertainment industry, WMG’s P/S Ratio of 2.41 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
NBIS
3.49
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
NBIS’s P/B Ratio of 3.49 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
WMG
24.11
Entertainment Industry
- Max
- 17.11
- Q3
- 8.38
- Median
- 5.24
- Q1
- 2.18
- Min
- 0.67
At 24.11, WMG’s P/B Ratio is at an extreme premium to the Entertainment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | NBIS | WMG |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 65.90 | 52.44 |
| Price-to-Sales Ratio (TTM) | 13.77 | 2.41 |
| Price-to-Book Ratio (MRQ) | 3.49 | 24.11 |
| Price-to-Free Cash Flow Ratio (TTM) | 0.33 | 26.81 |