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

Updated on October 7, 2025

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

Company Profile

Symbol	WBD	WMG
Company Name	Warner Bros. Discovery, Inc.	Warner Music Group Corp.
Country	United States	United States
GICS Sector	Communication Services	Communication Services
GICS Industry	Entertainment	Entertainment
Market Capitalization	47.01 billion USD	17.65 billion USD
Exchange	NasdaqGS	NasdaqGS
Listing Date	July 8, 2005	June 3, 2020
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of WBD 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.

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

Historical Performance at a Glance

Symbol	WBD	WMG
5-Day Price Return	0.66%	0.19%
13-Week Price Return	69.25%	15.19%
26-Week Price Return	76.98%	7.99%
52-Week Price Return	138.27%	8.06%
Month-to-Date Return	-2.77%	-0.60%
Year-to-Date Return	79.66%	9.21%
10-Day Avg. Volume	39.82M	1.63M
3-Month Avg. Volume	65.10M	1.85M
3-Month Volatility	77.66%	21.97%
Beta	1.62	1.30

Profitability

Return on Equity (TTM)

WBD

2.21%

Entertainment Industry

Max: 42.50%
Q3: 24.06%
Median: 13.69%
Q1: 5.35%
Min: -17.95%

WBD’s Return on Equity of 2.21% 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.

WBD vs. WMG: A comparison of their Return on Equity (TTM) against the Entertainment industry benchmark.

Net Profit Margin (TTM)

WBD

2.00%

Entertainment Industry

Max: 45.33%
Q3: 24.40%
Median: 13.94%
Q1: 4.28%
Min: -23.67%

Falling into the lower quartile for the Entertainment industry, WBD’s Net Profit Margin of 2.00% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

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.

WBD vs. WMG: A comparison of their Net Profit Margin (TTM) against the Entertainment industry benchmark.

Operating Profit Margin (TTM)

WBD

8.43%

Entertainment Industry

Max: 41.77%
Q3: 28.26%
Median: 16.13%
Q1: 8.03%
Min: -3.93%

WBD’s Operating Profit Margin of 8.43% 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.

WBD vs. WMG: A comparison of their Operating Profit Margin (TTM) against the Entertainment industry benchmark.

Profitability at a Glance

Symbol	WBD	WMG
Return on Equity (TTM)	2.21%	53.54%
Return on Assets (TTM)	0.74%	3.16%
Net Profit Margin (TTM)	2.00%	4.59%
Operating Profit Margin (TTM)	8.43%	10.73%
Gross Profit Margin (TTM)	44.43%	46.64%

Financial Strength

Current Ratio (MRQ)

WBD

1.04

Entertainment Industry

Max: 6.76
Q3: 4.02
Median: 1.55
Q1: 0.86
Min: 0.38

WBD’s Current Ratio of 1.04 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.

WBD vs. WMG: A comparison of their Current Ratio (MRQ) against the Entertainment industry benchmark.

Debt-to-Equity Ratio (MRQ)

WBD

0.96

Entertainment Industry

Max: 1.54
Q3: 0.77
Median: 0.16
Q1: 0.02
Min: 0.00

WBD’s leverage is in the upper quartile of the Entertainment industry, with a Debt-to-Equity Ratio of 0.96. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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.

WBD vs. WMG: A comparison of their Debt-to-Equity Ratio (MRQ) against the Entertainment industry benchmark.

Interest Coverage Ratio (TTM)

WBD

-4.48

Entertainment Industry

Max: 87.17
Q3: 35.59
Median: 7.06
Q1: 1.13
Min: -44.74

WBD has a negative Interest Coverage Ratio of -4.48. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

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.

WBD vs. WMG: A comparison of their Interest Coverage Ratio (TTM) against the Entertainment industry benchmark.

Financial Strength at a Glance

Symbol	WBD	WMG
Current Ratio (MRQ)	1.04	0.66
Quick Ratio (MRQ)	0.79	0.45
Debt-to-Equity Ratio (MRQ)	0.96	7.41
Interest Coverage Ratio (TTM)	-4.48	4.73

Growth

Revenue Growth

WBD 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

WBD 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)

WBD

0.00%

Entertainment Industry

Max: 2.90%
Q3: 1.29%
Median: 0.59%
Q1: 0.00%
Min: 0.00%

WBD currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

WMG

2.15%

Entertainment Industry

Max: 2.90%
Q3: 1.29%
Median: 0.59%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 2.15%, WMG offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

WBD vs. WMG: A comparison of their Dividend Yield (TTM) against the Entertainment industry benchmark.

Dividend Payout Ratio (TTM)

WBD

0.00%

Entertainment Industry

Max: 82.30%
Q3: 38.45%
Median: 29.74%
Q1: 0.00%
Min: 0.00%

WBD has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

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.

WBD vs. WMG: A comparison of their Dividend Payout Ratio (TTM) against the Entertainment industry benchmark.

Dividend at a Glance

Symbol	WBD	WMG
Dividend Yield (TTM)	0.00%	2.15%
Dividend Payout Ratio (TTM)	0.00%	82.30%

Valuation

Price-to-Earnings Ratio (TTM)

WBD

61.19

Entertainment Industry

Max: 92.09
Q3: 54.51
Median: 28.92
Q1: 19.75
Min: 2.96

A P/E Ratio of 61.19 places WBD 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.

WMG

59.16

Entertainment Industry

Max: 92.09
Q3: 54.51
Median: 28.92
Q1: 19.75
Min: 2.96

A P/E Ratio of 59.16 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.

WBD vs. WMG: A comparison of their Price-to-Earnings Ratio (TTM) against the Entertainment industry benchmark.

Price-to-Sales Ratio (TTM)

WBD

1.22

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, WBD’s P/S Ratio of 1.22 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

2.72

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 2.72 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.

WBD vs. WMG: A comparison of their Price-to-Sales Ratio (TTM) against the Entertainment industry benchmark.

Price-to-Book Ratio (MRQ)

WBD

0.79

Entertainment Industry

Max: 22.84
Q3: 10.54
Median: 6.60
Q1: 2.30
Min: 0.65

WBD’s P/B Ratio of 0.79 is in the lower quartile for the Entertainment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

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.

WBD vs. WMG: A comparison of their Price-to-Book Ratio (MRQ) against the Entertainment industry benchmark.

Valuation at a Glance

Symbol	WBD	WMG
Price-to-Earnings Ratio (TTM)	61.19	59.16
Price-to-Sales Ratio (TTM)	1.22	2.72
Price-to-Book Ratio (MRQ)	0.79	24.11
Price-to-Free Cash Flow Ratio (TTM)	11.56	30.24