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

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

Company Profile

RELX 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.

SymbolRELXWMG
Company NameRELX PLCWarner Music Group Corp.
CountryUnited KingdomUnited States
GICS SectorIndustrialsCommunication Services
GICS IndustryProfessional ServicesEntertainment
Market Capitalization89.37 billion USD16.91 billion USD
ExchangeNYSENasdaqGS
Listing DateOctober 6, 1994June 3, 2020
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of RELX 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.

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

Historical Performance at a Glance

SymbolRELXWMG
5-Day Price Return1.14%0.59%
13-Week Price Return-13.66%18.35%
26-Week Price Return-14.41%-7.60%
52-Week Price Return0.11%12.13%
Month-to-Date Return-10.09%10.87%
Year-to-Date Return-2.48%4.65%
10-Day Avg. Volume2.78M2.58M
3-Month Avg. Volume2.48M1.74M
3-Month Volatility16.41%23.72%
Beta0.721.30

Profitability

Return on Equity (TTM)

RELX

68.01%

Professional Services Industry

Max
52.17%
Q3
30.06%
Median
22.21%
Q1
11.67%
Min
-13.44%

RELX’s Return on Equity of 68.01% is exceptionally high, placing it well beyond the typical range for the Professional Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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.

RELX vs. WMG: A comparison of their Return on Equity (TTM) against their respective Professional Services and Entertainment industry benchmarks.

Net Profit Margin (TTM)

RELX

20.19%

Professional Services Industry

Max
26.06%
Q3
13.34%
Median
7.88%
Q1
3.50%
Min
-2.93%

A Net Profit Margin of 20.19% places RELX in the upper quartile for the Professional Services industry, signifying strong profitability and more effective cost management than most of its peers.

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.

RELX vs. WMG: A comparison of their Net Profit Margin (TTM) against their respective Professional Services and Entertainment industry benchmarks.

Operating Profit Margin (TTM)

RELX

30.62%

Professional Services Industry

Max
35.84%
Q3
19.38%
Median
12.54%
Q1
7.36%
Min
-5.21%

An Operating Profit Margin of 30.62% places RELX in the upper quartile for the Professional Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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.

RELX vs. WMG: A comparison of their Operating Profit Margin (TTM) against their respective Professional Services and Entertainment industry benchmarks.

Profitability at a Glance

SymbolRELXWMG
Return on Equity (TTM)68.01%53.54%
Return on Assets (TTM)13.07%3.16%
Net Profit Margin (TTM)20.19%4.59%
Operating Profit Margin (TTM)30.62%10.73%
Gross Profit Margin (TTM)65.48%46.64%

Financial Strength

Current Ratio (MRQ)

RELX

0.47

Professional Services Industry

Max
2.45
Q3
1.65
Median
1.26
Q1
1.10
Min
0.47

RELX’s Current Ratio of 0.47 falls into the lower quartile for the Professional Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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.

RELX vs. WMG: A comparison of their Current Ratio (MRQ) against their respective Professional Services and Entertainment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

RELX

3.46

Professional Services Industry

Max
2.63
Q3
1.44
Median
0.91
Q1
0.49
Min
0.00

With a Debt-to-Equity Ratio of 3.46, RELX operates with exceptionally high leverage compared to the Professional Services industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

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.

RELX vs. WMG: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Professional Services and Entertainment industry benchmarks.

Interest Coverage Ratio (TTM)

RELX

11.07

Professional Services Industry

Max
39.67
Q3
20.05
Median
11.07
Q1
5.36
Min
-2.22

RELX’s Interest Coverage Ratio of 11.07 is positioned comfortably within the norm for the Professional Services industry, indicating a standard and healthy capacity to cover its interest payments.

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.

RELX vs. WMG: A comparison of their Interest Coverage Ratio (TTM) against their respective Professional Services and Entertainment industry benchmarks.

Financial Strength at a Glance

SymbolRELXWMG
Current Ratio (MRQ)0.470.66
Quick Ratio (MRQ)0.420.45
Debt-to-Equity Ratio (MRQ)3.467.41
Interest Coverage Ratio (TTM)11.074.73

Growth

Revenue Growth

RELX vs. WMG: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

RELX vs. WMG: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

RELX

1.80%

Professional Services Industry

Max
5.28%
Q3
2.51%
Median
1.63%
Q1
0.62%
Min
0.00%

RELX’s Dividend Yield of 1.80% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.

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.

RELX vs. WMG: A comparison of their Dividend Yield (TTM) against their respective Professional Services and Entertainment industry benchmarks.

Dividend Payout Ratio (TTM)

RELX

60.42%

Professional Services Industry

Max
109.23%
Q3
64.39%
Median
47.00%
Q1
20.35%
Min
0.00%

RELX’s Dividend Payout Ratio of 60.42% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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.

RELX vs. WMG: A comparison of their Dividend Payout Ratio (TTM) against their respective Professional Services and Entertainment industry benchmarks.

Dividend at a Glance

SymbolRELXWMG
Dividend Yield (TTM)1.80%2.42%
Dividend Payout Ratio (TTM)60.42%82.30%

Valuation

Price-to-Earnings Ratio (TTM)

RELX

33.61

Professional Services Industry

Max
49.59
Q3
36.59
Median
28.13
Q1
18.55
Min
10.07

RELX’s P/E Ratio of 33.61 is within the middle range for the Professional Services 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.

RELX vs. WMG: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Professional Services and Entertainment industry benchmarks.

Price-to-Sales Ratio (TTM)

RELX

6.79

Professional Services Industry

Max
9.54
Q3
5.11
Median
2.10
Q1
0.75
Min
0.11

RELX’s P/S Ratio of 6.79 is in the upper echelon for the Professional Services 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.

RELX vs. WMG: A comparison of their Price-to-Sales Ratio (TTM) against their respective Professional Services and Entertainment industry benchmarks.

Price-to-Book Ratio (MRQ)

RELX

33.17

Professional Services Industry

Max
13.75
Q3
8.87
Median
4.35
Q1
2.43
Min
0.54

At 33.17, RELX’s P/B Ratio is at an extreme premium to the Professional Services 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.

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.

RELX vs. WMG: A comparison of their Price-to-Book Ratio (MRQ) against their respective Professional Services and Entertainment industry benchmarks.

Valuation at a Glance

SymbolRELXWMG
Price-to-Earnings Ratio (TTM)33.6152.44
Price-to-Sales Ratio (TTM)6.792.41
Price-to-Book Ratio (MRQ)33.1724.11
Price-to-Free Cash Flow Ratio (TTM)28.6626.81