TKO vs. WMG: TKO vs. Warner Music Stock Comparison
How do TKO (TKO) and Warner Music (WMG) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
TKO (TKO) and Warner Music (WMG) are both classified in the Movies & Entertainment sub-industry within the broader Entertainment industry, placing them in the closest GICS peer bucket.
TKO (TKO) has more than two decades of public-market history since October 19, 1999, whereas Warner Music (WMG) listed on June 3, 2020 and has a much shorter record to draw on.
| Profile Item | TKO | WMG |
|---|---|---|
| Name | TKO Group Holdings, Inc. Class A Common Stock | Warner Music Group Corp. |
| Country/Region | United States | United States |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry Group | Media & Entertainment | Media & Entertainment |
| GICS Industry | Entertainment | Entertainment |
| GICS Sub-Industry | Movies & Entertainment | Movies & Entertainment |
| Market Capitalization | 36.02 billion USD | 16.37 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | October 19, 1999 | June 3, 2020 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | TKO | WMG |
|---|---|---|
| Total Return (1Y) | 8.79% | 6.98% |
| Total Return (3Y, Annualized) | 33.14% | 1.34% |
| Total Return (5Y, Annualized) | 29.97% | -6.02% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
Warner Music (WMG) has an aggressive beta of 1.31, indicating higher sensitivity to broad-market moves, while TKO (TKO) is defensive at 0.61 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.
| Metric | TKO | WMG |
|---|---|---|
| Volatility (1Y, Annualized) | 32.20% | 35.24% |
| Beta (5Y) | 0.61 | 1.31 |
| Max Drawdown (5Y) | -34.80% | -53.17% |
| Avg. Volume (3M) | 1.09M | 2.05M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | TKO | WMG |
|---|---|---|
| Sharpe Ratio (1Y) | 0.14 | 0.08 |
| Sortino Ratio (1Y) | 0.21 | 0.11 |
Profitability
ROE (TTM)
Warner Music (WMG) at 70.07% clears its industry range for ROE, a sharper capital-efficiency signal than TKO (TKO) at 9.39%, which is closer to a typical peer reading.
TKO
Media & Entertainment industry group
9.39%
- Max
- 49.92%
- Q3
- 17.95%
- TKO
- 9.39%
- Median
- 7.20%
- Q1
- -4.53%
- Min
- -26.31%
WMG
Media & Entertainment industry group
70.07%
- WMG
- 70.07%
- Max
- 49.92%
- Q3
- 17.95%
- Median
- 7.20%
- Q1
- -4.53%
- Min
- -26.31%
Net Margin (TTM)
Both TKO (TKO) at 5.18% and Warner Music (WMG) at 9.20% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.
TKO
Media & Entertainment industry group
5.18%
- Max
- 32.91%
- Q3
- 11.75%
- TKO
- 5.18%
- Median
- 5.04%
- Q1
- -4.17%
- Min
- -25.14%
WMG
Media & Entertainment industry group
9.20%
- Max
- 32.91%
- Q3
- 11.75%
- WMG
- 9.20%
- Median
- 5.04%
- Q1
- -4.17%
- Min
- -25.14%
Operating Margin (TTM)
TKO (TKO) at 30.47% operates in the top operating margin quartile, ahead of Warner Music (WMG) at 16.74%, which runs around its industry’s norm.
TKO
Media & Entertainment industry group
30.47%
- Max
- 40.16%
- TKO
- 30.47%
- Q3
- 18.72%
- Median
- 8.63%
- Q1
- 1.90%
- Min
- -22.08%
WMG
Media & Entertainment industry group
16.74%
- Max
- 40.16%
- Q3
- 18.72%
- WMG
- 16.74%
- Median
- 8.63%
- Q1
- 1.90%
- Min
- -22.08%
Profitability Metrics
| Metric | TKO | WMG |
|---|---|---|
| ROE (TTM) | 9.39% | 70.07% |
| ROA (TTM) | 5.22% | 7.65% |
| Net Margin (TTM) | 5.18% | 9.20% |
| Operating Margin (TTM) | 30.47% | 16.74% |
| Gross Margin (TTM) | 60.32% | 45.77% |
Growth
Revenue Growth
Warner Music (WMG) at 4.37% is around its peer norm for revenue growth, while TKO (TKO) at -3.05% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
TKO (TKO) at 11,200.00% clears its industry range for EPS growth, a much stronger earnings trajectory than Warner Music (WMG) at -16.87%, which is closer to a typical peer reading.
Growth Metrics
| Metric | TKO | WMG |
|---|---|---|
| Revenue Growth (YoY) | -3.05% | 4.37% |
| Revenue Growth (3Y CAGR) | 60.74% | 4.25% |
| EPS Growth (YoY) | 11,200.00% | -16.87% |
| EPS Growth (3Y CAGR) | -- | -13.33% |
Financial Strength
Current Ratio (MRQ)
TKO (TKO) at 1.35 keeps current ratio within its industry’s typical mid-range, while Warner Music (WMG) at 0.73 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for WMG.
TKO
Media & Entertainment industry group
1.35
- Max
- 4.69
- Q3
- 2.53
- Median
- 1.52
- TKO
- 1.35
- Q1
- 0.95
- Min
- 0.28
WMG
Media & Entertainment industry group
0.73
- Max
- 4.69
- Q3
- 2.53
- Median
- 1.52
- Q1
- 0.95
- WMG
- 0.73
- Min
- 0.28
Debt / Equity (MRQ)
TKO (TKO) at 0.60 is near its industry mid-range for debt-to-equity ratio, while Warner Music (WMG) at 4.53 sits above its benchmark range, pointing to a heavier debt load relative to equity.
TKO
Media & Entertainment industry group
0.60
- Max
- 3.65
- Q3
- 1.69
- TKO
- 0.60
- Median
- 0.46
- Q1
- 0.17
- Min
- 0.00
WMG
Media & Entertainment industry group
4.53
- WMG
- 4.53
- Max
- 3.65
- Q3
- 1.69
- Median
- 0.46
- Q1
- 0.17
- Min
- 0.00
Financial Strength Metrics
| Metric | TKO | WMG |
|---|---|---|
| Current Ratio (MRQ) | 1.35 | 0.73 |
| Debt / Equity (MRQ) | 0.60 | 4.53 |
| Net Debt / EBITDA | 2.39 | 2.57 |
Dividends
Dividend Yield (TTM)
Both TKO (TKO) at 1.66% and Warner Music (WMG) at 2.38% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.
TKO
Media & Entertainment industry group
1.66%
- TKO
- 1.66%
- Max
- 1.33%
- Q3
- 0.65%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
WMG
Media & Entertainment industry group
2.38%
- WMG
- 2.38%
- Max
- 1.33%
- Q3
- 0.65%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both pay out more than their industries’ typical bands, and TKO more so: Warner Music (WMG) at 60.80% sits above the band, while TKO (TKO) at 84.18% exceeds every peer in its group.
TKO
Media & Entertainment industry group
84.18%
- TKO
- 84.18%
- Max
- 71.43%
- Q3
- 28.98%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
WMG
Media & Entertainment industry group
60.80%
- Max
- 71.43%
- WMG
- 60.80%
- Q3
- 28.98%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | TKO | WMG |
|---|---|---|
| Dividend Yield (TTM) | 1.66% | 2.38% |
| Dividend Payout Ratio (TTM) | 84.18% | 60.80% |
Valuation
P/E Ratio (TTM)
Warner Music (WMG) at 25.04 is near its industry’s usual P/E ratio, while TKO (TKO) at 51.21 sits in the richer quartile — TKO needs stronger growth or earnings quality to justify the premium.
TKO
Media & Entertainment industry group
51.21
- TKO
- 51.21
- Max
- 51.21
- Q3
- 28.90
- Median
- 17.98
- Q1
- 11.53
- Min
- 1.64
WMG
Media & Entertainment industry group
25.04
- Max
- 51.21
- Q3
- 28.90
- WMG
- 25.04
- Median
- 17.98
- Q1
- 11.53
- Min
- 1.64
P/S Ratio (TTM)
Warner Music (WMG) at 2.24 is priced about in line with its industry on P/S ratio, while TKO (TKO) at 6.50 sits in the pricier quartile — TKO costs more per dollar of sales.
TKO
Media & Entertainment industry group
6.50
- Max
- 7.43
- TKO
- 6.50
- Q3
- 3.82
- Median
- 1.40
- Q1
- 0.70
- Min
- 0.00
WMG
Media & Entertainment industry group
2.24
- Max
- 7.43
- Q3
- 3.82
- WMG
- 2.24
- Median
- 1.40
- Q1
- 0.70
- Min
- 0.00
P/B Ratio (MRQ)
TKO (TKO) at 4.14 sits near its industry’s typical P/B ratio, while Warner Music (WMG) at 19.17 prices above its benchmark range — WMG looks rich relative to book.
TKO
Media & Entertainment industry group
4.14
- Max
- 11.45
- Q3
- 5.30
- TKO
- 4.14
- Median
- 1.84
- Q1
- 0.77
- Min
- -2.61
WMG
Media & Entertainment industry group
19.17
- WMG
- 19.17
- Max
- 11.45
- Q3
- 5.30
- Median
- 1.84
- Q1
- 0.77
- Min
- -2.61
Valuation Metrics
| Metric | TKO | WMG |
|---|---|---|
| P/E Ratio (TTM) | 51.21 | 25.04 |
| P/S Ratio (TTM) | 6.50 | 2.24 |
| P/B Ratio (MRQ) | 4.14 | 19.17 |
| Free Cash Flow Yield (TTM) | 2.31% | 2.33% |