TEF vs. WMG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at TEF and WMG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
TEF 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.
| Symbol | TEF | WMG |
|---|---|---|
| Company Name | Telefónica, S.A. | Warner Music Group Corp. |
| Country | Spain | United States |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry | Diversified Telecommunication Services | Entertainment |
| Market Capitalization | 32.37 billion USD | 16.91 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | June 12, 1987 | June 3, 2020 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of TEF 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 | TEF | WMG |
|---|---|---|
| 5-Day Price Return | 2.47% | 0.59% |
| 13-Week Price Return | 6.64% | 18.35% |
| 26-Week Price Return | 15.44% | -7.60% |
| 52-Week Price Return | 20.25% | 12.13% |
| Month-to-Date Return | 7.25% | 10.87% |
| Year-to-Date Return | 23.24% | 4.65% |
| 10-Day Avg. Volume | 6.75M | 2.58M |
| 3-Month Avg. Volume | 8.38M | 1.74M |
| 3-Month Volatility | 15.38% | 23.72% |
| Beta | 0.64 | 1.30 |
Profitability
Return on Equity (TTM)
TEF
-9.35%
Diversified Telecommunication Services Industry
- Max
- 35.96%
- Q3
- 14.90%
- Median
- 8.29%
- Q1
- -0.99%
- Min
- -18.19%
TEF has a negative Return on Equity of -9.35%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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)
TEF
-4.67%
Diversified Telecommunication Services Industry
- Max
- 28.40%
- Q3
- 13.05%
- Median
- 6.85%
- Q1
- -0.81%
- Min
- -18.76%
TEF has a negative Net Profit Margin of -4.67%, 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)
TEF
6.09%
Diversified Telecommunication Services Industry
- Max
- 37.46%
- Q3
- 22.24%
- Median
- 15.73%
- Q1
- 9.79%
- Min
- 2.06%
TEF’s Operating Profit Margin of 6.09% is in the lower quartile for the Diversified Telecommunication Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
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 | TEF | WMG |
|---|---|---|
| Return on Equity (TTM) | -9.35% | 53.54% |
| Return on Assets (TTM) | -1.88% | 3.16% |
| Net Profit Margin (TTM) | -4.67% | 4.59% |
| Operating Profit Margin (TTM) | 6.09% | 10.73% |
| Gross Profit Margin (TTM) | 73.22% | 46.64% |
Financial Strength
Current Ratio (MRQ)
TEF
0.97
Diversified Telecommunication Services Industry
- Max
- 1.63
- Q3
- 1.14
- Median
- 0.92
- Q1
- 0.68
- Min
- 0.16
TEF’s Current Ratio of 0.97 aligns with the median group of the Diversified Telecommunication Services industry, indicating that its short-term liquidity is in line with its sector peers.
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)
TEF
2.31
Diversified Telecommunication Services Industry
- Max
- 3.82
- Q3
- 2.06
- Median
- 1.32
- Q1
- 0.74
- Min
- 0.11
TEF’s leverage is in the upper quartile of the Diversified Telecommunication Services industry, with a Debt-to-Equity Ratio of 2.31. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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)
TEF
1.36
Diversified Telecommunication Services Industry
- Max
- 14.66
- Q3
- 8.25
- Median
- 3.53
- Q1
- 1.47
- Min
- -2.60
In the lower quartile for the Diversified Telecommunication Services industry, TEF’s Interest Coverage Ratio of 1.36 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
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 | TEF | WMG |
|---|---|---|
| Current Ratio (MRQ) | 0.97 | 0.66 |
| Quick Ratio (MRQ) | 0.93 | 0.45 |
| Debt-to-Equity Ratio (MRQ) | 2.31 | 7.41 |
| Interest Coverage Ratio (TTM) | 1.36 | 4.73 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
TEF
6.89%
Diversified Telecommunication Services Industry
- Max
- 10.34%
- Q3
- 5.44%
- Median
- 3.89%
- Q1
- 1.73%
- Min
- 0.00%
With a Dividend Yield of 6.89%, TEF offers a more attractive income stream than most of its peers in the Diversified Telecommunication Services industry, signaling a strong commitment to shareholder returns.
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)
TEF
110.52%
Diversified Telecommunication Services Industry
- Max
- 270.06%
- Q3
- 135.21%
- Median
- 76.62%
- Q1
- 35.06%
- Min
- 0.00%
TEF’s Dividend Payout Ratio of 110.52% is within the typical range for the Diversified Telecommunication 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.
Dividend at a Glance
| Symbol | TEF | WMG |
|---|---|---|
| Dividend Yield (TTM) | 6.89% | 2.42% |
| Dividend Payout Ratio (TTM) | 110.52% | 82.30% |
Valuation
Price-to-Earnings Ratio (TTM)
TEF
--
Diversified Telecommunication Services Industry
- Max
- 33.39
- Q3
- 23.91
- Median
- 16.72
- Q1
- 13.00
- Min
- 4.13
P/E Ratio data for TEF is currently unavailable.
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)
TEF
0.68
Diversified Telecommunication Services Industry
- Max
- 4.75
- Q3
- 2.60
- Median
- 1.62
- Q1
- 0.94
- Min
- 0.35
In the lower quartile for the Diversified Telecommunication Services industry, TEF’s P/S Ratio of 0.68 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.
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)
TEF
1.25
Diversified Telecommunication Services Industry
- Max
- 5.77
- Q3
- 3.45
- Median
- 2.10
- Q1
- 1.19
- Min
- 0.32
TEF’s P/B Ratio of 1.25 is within the conventional range for the Diversified Telecommunication 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
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 | TEF | WMG |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | -- | 52.44 |
| Price-to-Sales Ratio (TTM) | 0.68 | 2.41 |
| Price-to-Book Ratio (MRQ) | 1.25 | 24.11 |
| Price-to-Free Cash Flow Ratio (TTM) | 5.24 | 26.81 |