TMUS vs. WMG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at TMUS and WMG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | TMUS | WMG |
|---|---|---|
| Company Name | T-Mobile US, Inc. | Warner Music Group Corp. |
| Country | United States | United States |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry | Wireless Telecommunication Services | Entertainment |
| Market Capitalization | 245.34 billion USD | 15.94 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | April 19, 2007 | June 3, 2020 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of TMUS 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 | TMUS | WMG |
|---|---|---|
| 5-Day Price Return | 4.96% | 1.86% |
| 13-Week Price Return | -15.14% | -6.69% |
| 26-Week Price Return | -8.96% | 10.46% |
| 52-Week Price Return | -10.30% | -8.15% |
| Month-to-Date Return | 2.87% | -5.02% |
| Year-to-Date Return | -2.11% | -2.08% |
| 10-Day Avg. Volume | 5.10M | 1.43M |
| 3-Month Avg. Volume | 4.46M | 1.91M |
| 3-Month Volatility | 21.51% | 21.01% |
| Beta | 0.44 | 1.25 |
Profitability
Return on Equity (TTM)
TMUS
19.42%
Wireless Telecommunication Services Industry
- Max
- 31.50%
- Q3
- 20.21%
- Median
- 14.45%
- Q1
- 12.15%
- Min
- 5.61%
TMUS’s Return on Equity of 19.42% is on par with the norm for the Wireless Telecommunication Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
WMG
53.54%
Entertainment Industry
- Max
- 41.86%
- Q3
- 22.17%
- Median
- 13.67%
- Q1
- 4.55%
- 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)
TMUS
13.83%
Wireless Telecommunication Services Industry
- Max
- 23.76%
- Q3
- 14.44%
- Median
- 10.90%
- Q1
- 7.21%
- Min
- -1.46%
TMUS’s Net Profit Margin of 13.83% is aligned with the median group of its peers in the Wireless Telecommunication Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
WMG
4.59%
Entertainment Industry
- Max
- 45.33%
- Q3
- 29.05%
- Median
- 15.14%
- Q1
- 4.44%
- Min
- -21.70%
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)
TMUS
22.28%
Wireless Telecommunication Services Industry
- Max
- 31.05%
- Q3
- 23.51%
- Median
- 20.15%
- Q1
- 16.28%
- Min
- 8.96%
TMUS’s Operating Profit Margin of 22.28% is around the midpoint for the Wireless Telecommunication Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
WMG
10.73%
Entertainment Industry
- Max
- 43.42%
- Q3
- 28.90%
- Median
- 18.77%
- Q1
- 9.11%
- Min
- -4.88%
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 | TMUS | WMG |
|---|---|---|
| Return on Equity (TTM) | 19.42% | 53.54% |
| Return on Assets (TTM) | 5.57% | 3.16% |
| Net Profit Margin (TTM) | 13.83% | 4.59% |
| Operating Profit Margin (TTM) | 22.28% | 10.73% |
| Gross Profit Margin (TTM) | 63.57% | 46.64% |
Financial Strength
Current Ratio (MRQ)
TMUS
0.89
Wireless Telecommunication Services Industry
- Max
- 1.26
- Q3
- 0.93
- Median
- 0.70
- Q1
- 0.60
- Min
- 0.34
TMUS’s Current Ratio of 0.89 aligns with the median group of the Wireless Telecommunication Services industry, indicating that its short-term liquidity is in line with its sector peers.
WMG
0.66
Entertainment Industry
- Max
- 6.76
- Q3
- 4.06
- Median
- 1.58
- Q1
- 0.87
- 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)
TMUS
1.49
Wireless Telecommunication Services Industry
- Max
- 2.80
- Q3
- 2.16
- Median
- 1.48
- Q1
- 0.90
- Min
- 0.19
TMUS’s Debt-to-Equity Ratio of 1.49 is typical for the Wireless Telecommunication Services 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
- 0.80
- Median
- 0.15
- Q1
- 0.01
- 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)
TMUS
5.31
Wireless Telecommunication Services Industry
- Max
- 12.67
- Q3
- 7.48
- Median
- 4.11
- Q1
- 1.78
- Min
- -0.02
TMUS’s Interest Coverage Ratio of 5.31 is positioned comfortably within the norm for the Wireless Telecommunication Services industry, indicating a standard and healthy capacity to cover its interest payments.
WMG
4.73
Entertainment Industry
- Max
- 62.11
- 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 | TMUS | WMG |
|---|---|---|
| Current Ratio (MRQ) | 0.89 | 0.66 |
| Quick Ratio (MRQ) | 0.75 | 0.45 |
| Debt-to-Equity Ratio (MRQ) | 1.49 | 7.41 |
| Interest Coverage Ratio (TTM) | 5.31 | 4.73 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
TMUS
1.64%
Wireless Telecommunication Services Industry
- Max
- 7.69%
- Q3
- 5.25%
- Median
- 3.91%
- Q1
- 2.62%
- Min
- 0.23%
TMUS’s Dividend Yield of 1.64% is in the lower quartile for the Wireless Telecommunication Services industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
WMG
2.43%
Entertainment Industry
- Max
- 2.71%
- Q3
- 1.23%
- Median
- 0.60%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.43%, 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)
TMUS
33.70%
Wireless Telecommunication Services Industry
- Max
- 169.59%
- Q3
- 121.96%
- Median
- 75.18%
- Q1
- 64.32%
- Min
- 1.50%
TMUS’s Dividend Payout Ratio of 33.70% is in the lower quartile for the Wireless Telecommunication Services industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
WMG
82.30%
Entertainment Industry
- Max
- 82.30%
- Q3
- 37.50%
- Median
- 24.18%
- 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 | TMUS | WMG |
|---|---|---|
| Dividend Yield (TTM) | 1.64% | 2.43% |
| Dividend Payout Ratio (TTM) | 33.70% | 82.30% |
Valuation
Price-to-Earnings Ratio (TTM)
TMUS
20.55
Wireless Telecommunication Services Industry
- Max
- 39.13
- Q3
- 23.50
- Median
- 17.21
- Q1
- 11.85
- Min
- 4.32
TMUS’s P/E Ratio of 20.55 is within the middle range for the Wireless Telecommunication 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
52.21
Entertainment Industry
- Max
- 80.06
- Q3
- 53.00
- Median
- 28.44
- Q1
- 18.00
- Min
- 2.61
WMG’s P/E Ratio of 52.21 is within the middle range for the Entertainment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
TMUS
2.84
Wireless Telecommunication Services Industry
- Max
- 4.11
- Q3
- 2.47
- Median
- 1.43
- Q1
- 1.31
- Min
- 0.63
TMUS’s P/S Ratio of 2.84 is in the upper echelon for the Wireless Telecommunication 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
2.40
Entertainment Industry
- Max
- 10.86
- Q3
- 6.98
- Median
- 4.25
- Q1
- 2.56
- Min
- 0.51
In the lower quartile for the Entertainment industry, WMG’s P/S Ratio of 2.40 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)
TMUS
4.45
Wireless Telecommunication Services Industry
- Max
- 4.66
- Q3
- 2.85
- Median
- 2.11
- Q1
- 1.40
- Min
- 0.39
TMUS’s P/B Ratio of 4.45 is in the upper tier for the Wireless Telecommunication Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
WMG
24.11
Entertainment Industry
- Max
- 19.63
- Q3
- 10.35
- Median
- 5.18
- Q1
- 2.07
- Min
- 0.59
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 | TMUS | WMG |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 20.55 | 52.21 |
| Price-to-Sales Ratio (TTM) | 2.84 | 2.40 |
| Price-to-Book Ratio (MRQ) | 4.45 | 24.11 |
| Price-to-Free Cash Flow Ratio (TTM) | 17.67 | 26.69 |