World Wrestling Entertainment (WWE) & The Competition Critical Comparison
World Wrestling Entertainment (NYSE: WWE) is one of 25 public companies in the “Entertainment Production” industry, but how does it weigh in compared to its competitors? We will compare World Wrestling Entertainment to similar businesses based off the strength of its dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Earnings & Valuation
This table compares World Wrestling Entertainment and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|World Wrestling Entertainment||$762.15 million||$81.40 million||69.71|
|World Wrestling Entertainment Competitors||$6.27 billion||$1.49 billion||39.94|
World Wrestling Entertainment’s competitors have higher revenue and earnings than World Wrestling Entertainment. World Wrestling Entertainment is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently the more expensive than other companies in its industry.
Institutional and Insider Ownership
49.5% of World Wrestling Entertainment shares are held by institutional investors. Comparatively, 46.5% of shares of all “Entertainment Production” companies are held by institutional investors. 49.8% of World Wrestling Entertainment shares are held by company insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares World Wrestling Entertainment and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|World Wrestling Entertainment||3.29%||13.07%||5.51%|
|World Wrestling Entertainment Competitors||4.62%||11.46%||4.02%|
This is a breakdown of recent recommendations and price targets for World Wrestling Entertainment and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|World Wrestling Entertainment||1||2||6||0||2.56|
|World Wrestling Entertainment Competitors||141||527||1231||31||2.60|
World Wrestling Entertainment currently has a consensus target price of $24.43, suggesting a potential upside of 13.04%. All “Entertainment Production” companies have a potential upside of 19.40%. Given World Wrestling Entertainment’s competitors stronger consensus rating and higher possible upside, analysts clearly believe World Wrestling Entertainment has less favorable growth aspects than its competitors.
World Wrestling Entertainment pays an annual dividend of $0.48 per share and has a dividend yield of 2.2%. World Wrestling Entertainment pays out 154.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Entertainment Production” companies pay a dividend yield of 1.4% and pay out 29.9% of their earnings in the form of a dividend.
Risk & Volatility
World Wrestling Entertainment has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, World Wrestling Entertainment’s competitors have a beta of 0.91, meaning that their average share price is 9% less volatile than the S&P 500.
World Wrestling Entertainment competitors beat World Wrestling Entertainment on 8 of the 15 factors compared.
World Wrestling Entertainment Company Profile
World Wrestling Entertainment, Inc. (WWE) is an integrated media and entertainment company. The Company’s segments are Network, Television, Home Entertainment, Digital Media, Live Events, Licensing, Venue Merchandise, WWEShop, WWE Studios, and Corporate and Other. The Company is engaged in the production and distribution of content through various channels, including its WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring its brands. Its Network, Television, Home Entertainment and Digital Media are individual segments that comprise the Media Division. Its Live Events, Licensing, Venue Merchandise and WWEShop are individual segments that comprise the Consumer Products Division. Its Network segment consists of subscriptions to WWE Network. The Company’s Television segment consists of television rights fees and advertising.
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