TKO vs. WMG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at TKO and WMG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | TKO | WMG |
|---|---|---|
| Company Name | TKO Group Holdings, Inc. | Warner Music Group Corp. |
| Country | United States | United States |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry | Entertainment | Entertainment |
| Market Capitalization | 15.95 billion USD | 17.02 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | October 19, 1999 | June 3, 2020 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of TKO 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 | TKO | WMG |
|---|---|---|
| 5-Day Price Return | -0.40% | -4.50% |
| 13-Week Price Return | 14.45% | 8.87% |
| 26-Week Price Return | 24.83% | 5.56% |
| 52-Week Price Return | 55.70% | 6.18% |
| Month-to-Date Return | -1.98% | -4.14% |
| Year-to-Date Return | 39.30% | 5.32% |
| 10-Day Avg. Volume | 1.53M | 1.53M |
| 3-Month Avg. Volume | 1.07M | 1.85M |
| 3-Month Volatility | 33.42% | 22.78% |
| Beta | 0.69 | 1.30 |
Profitability
Return on Equity (TTM)
TKO
5.09%
Entertainment Industry
- Max
- 42.50%
- Q3
- 24.06%
- Median
- 13.69%
- Q1
- 5.35%
- Min
- -17.95%
TKO’s Return on Equity of 5.09% is in the lower quartile for the Entertainment industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
WMG
53.54%
Entertainment Industry
- Max
- 42.50%
- Q3
- 24.06%
- Median
- 13.69%
- Q1
- 5.35%
- Min
- -17.95%
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)
TKO
5.41%
Entertainment Industry
- Max
- 45.33%
- Q3
- 24.40%
- Median
- 13.94%
- Q1
- 4.28%
- Min
- -23.67%
TKO’s Net Profit Margin of 5.41% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.
WMG
4.59%
Entertainment Industry
- Max
- 45.33%
- Q3
- 24.40%
- Median
- 13.94%
- Q1
- 4.28%
- Min
- -23.67%
WMG’s Net Profit Margin of 4.59% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
TKO
21.64%
Entertainment Industry
- Max
- 41.77%
- Q3
- 28.26%
- Median
- 16.13%
- Q1
- 8.03%
- Min
- -3.93%
TKO’s Operating Profit Margin of 21.64% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.
WMG
10.73%
Entertainment Industry
- Max
- 41.77%
- Q3
- 28.26%
- Median
- 16.13%
- Q1
- 8.03%
- Min
- -3.93%
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 | TKO | WMG |
|---|---|---|
| Return on Equity (TTM) | 5.09% | 53.54% |
| Return on Assets (TTM) | 1.51% | 3.16% |
| Net Profit Margin (TTM) | 5.41% | 4.59% |
| Operating Profit Margin (TTM) | 21.64% | 10.73% |
| Gross Profit Margin (TTM) | 61.98% | 46.64% |
Financial Strength
Current Ratio (MRQ)
TKO
1.30
Entertainment Industry
- Max
- 6.76
- Q3
- 4.02
- Median
- 1.55
- Q1
- 0.86
- Min
- 0.38
TKO’s Current Ratio of 1.30 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.
WMG
0.66
Entertainment Industry
- Max
- 6.76
- Q3
- 4.02
- Median
- 1.55
- Q1
- 0.86
- Min
- 0.38
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)
TKO
0.70
Entertainment Industry
- Max
- 1.54
- Q3
- 0.77
- Median
- 0.16
- Q1
- 0.02
- Min
- 0.00
TKO’s Debt-to-Equity Ratio of 0.70 is typical for the Entertainment 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
- 1.54
- Q3
- 0.77
- Median
- 0.16
- Q1
- 0.02
- 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)
TKO
1.13
Entertainment Industry
- Max
- 87.17
- Q3
- 35.59
- Median
- 7.06
- Q1
- 1.13
- Min
- -44.74
TKO’s Interest Coverage Ratio of 1.13 is positioned comfortably within the norm for the Entertainment industry, indicating a standard and healthy capacity to cover its interest payments.
WMG
4.73
Entertainment Industry
- Max
- 87.17
- Q3
- 35.59
- Median
- 7.06
- Q1
- 1.13
- Min
- -44.74
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 | TKO | WMG |
|---|---|---|
| Current Ratio (MRQ) | 1.30 | 0.66 |
| Quick Ratio (MRQ) | 1.20 | 0.45 |
| Debt-to-Equity Ratio (MRQ) | 0.70 | 7.41 |
| Interest Coverage Ratio (TTM) | 1.13 | 4.73 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
TKO
0.16%
Entertainment Industry
- Max
- 2.90%
- Q3
- 1.29%
- Median
- 0.59%
- Q1
- 0.00%
- Min
- 0.00%
TKO’s Dividend Yield of 0.16% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.
WMG
2.20%
Entertainment Industry
- Max
- 2.90%
- Q3
- 1.29%
- Median
- 0.59%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.20%, 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)
TKO
39.63%
Entertainment Industry
- Max
- 82.30%
- Q3
- 38.45%
- Median
- 29.74%
- Q1
- 0.00%
- Min
- 0.00%
TKO’s Dividend Payout Ratio of 39.63% 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.
WMG
82.30%
Entertainment Industry
- Max
- 82.30%
- Q3
- 38.45%
- Median
- 29.74%
- 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 | TKO | WMG |
|---|---|---|
| Dividend Yield (TTM) | 0.16% | 2.20% |
| Dividend Payout Ratio (TTM) | 39.63% | 82.30% |
Valuation
Price-to-Earnings Ratio (TTM)
TKO
182.53
Entertainment Industry
- Max
- 92.09
- Q3
- 54.51
- Median
- 28.92
- Q1
- 19.75
- Min
- 2.96
At 182.53, TKO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Entertainment 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
57.58
Entertainment Industry
- Max
- 92.09
- Q3
- 54.51
- Median
- 28.92
- Q1
- 19.75
- Min
- 2.96
A P/E Ratio of 57.58 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)
TKO
9.87
Entertainment Industry
- Max
- 12.34
- Q3
- 7.67
- Median
- 5.06
- Q1
- 2.72
- Min
- 0.67
TKO’s P/S Ratio of 9.87 is in the upper echelon for the Entertainment 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
2.64
Entertainment Industry
- Max
- 12.34
- Q3
- 7.67
- Median
- 5.06
- Q1
- 2.72
- Min
- 0.67
In the lower quartile for the Entertainment industry, WMG’s P/S Ratio of 2.64 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)
TKO
8.44
Entertainment Industry
- Max
- 22.84
- Q3
- 10.54
- Median
- 6.60
- Q1
- 2.30
- Min
- 0.65
TKO’s P/B Ratio of 8.44 is within the conventional range for the Entertainment 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
- 22.84
- Q3
- 10.54
- Median
- 6.60
- Q1
- 2.30
- Min
- 0.65
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 | TKO | WMG |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 182.53 | 57.58 |
| Price-to-Sales Ratio (TTM) | 9.87 | 2.64 |
| Price-to-Book Ratio (MRQ) | 8.44 | 24.11 |
| Price-to-Free Cash Flow Ratio (TTM) | 52.66 | 29.43 |