Financial Survey: Gaia (NASDAQ:GAIA) versus Warner Bros. Discovery (NASDAQ:WBD)

Gaia (NASDAQ:GAIA) and Warner Bros. Discovery (NASDAQ:WBD) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Gaia and Warner Bros. Discovery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gaia	-4.76%	-4.62%	-3.06%
Warner Bros. Discovery	-4.67%	-4.77%	-1.74%

Risk and Volatility

Gaia has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Warner Bros. Discovery has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Institutional and Insider Ownership

40.5% of Gaia shares are owned by institutional investors. Comparatively, 60.0% of Warner Bros. Discovery shares are owned by institutional investors. 26.0% of Gaia shares are owned by company insiders. Comparatively, 0.7% of Warner Bros. Discovery shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Gaia and Warner Bros. Discovery, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaia	1	0	0	0	1.00
Warner Bros. Discovery	2	14	6	1	2.26

Warner Bros. Discovery has a consensus price target of $27.04, suggesting a potential upside of 3.21%. Given Warner Bros. Discovery’s stronger consensus rating and higher probable upside, analysts clearly believe Warner Bros. Discovery is more favorable than Gaia.

Earnings & Valuation

This table compares Gaia and Warner Bros. Discovery”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gaia	$98.95 million	0.61	-$4.49 million	($0.19)	-12.53
Warner Bros. Discovery	$37.30 billion	1.76	$727.00 million	($0.70)	-37.43

Warner Bros. Discovery has higher revenue and earnings than Gaia. Warner Bros. Discovery is trading at a lower price-to-earnings ratio than Gaia, indicating that it is currently the more affordable of the two stocks.

Summary

Warner Bros. Discovery beats Gaia on 11 of the 15 factors compared between the two stocks.

About Gaia

Gaia, Inc. operates a digital video subscription service and online community for underserved member base in the United States, Canada, Australia, and internationally. The company has a digital content library with various titles in Spanish, German, and French languages available to its subscribers on internet connected devices. Its network includes Yoga channel, which provides access to streaming yoga, Eastern arts, and other movement based classes; Transformation channel that offers content in the areas of spiritual growth, personal development, and expanded consciousness; Alternative Healing channel, which features content focused on food and nutrition, holistic healing, alternative and integrative medicines, and longevity; and Seeking Truth channel that provides access to interviews and presentations in the ancient wisdom and metaphysics genre. The company was formerly known as Gaiam, Inc. and changed its name to Gaia, Inc. in July 2016. Gaia, Inc. was incorporated in 1988 and is headquartered in Louisville, Colorado.

About Warner Bros. Discovery

Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming. The Network segment comprises domestic and international television networks. The DTC segment offers premium pay-tv and streaming services. In addition, the company offers portfolio of content, brands, and franchises across television, film, streaming, and gaming under the Warner Bros. Motion Picture Group, Warner Bros. Television Group, DC, HBO, HBO Max, Max, Discovery Channel, discovery+, CNN, HGTV, Food Network, TNT Sports, TBS, TLC, OWN, Warner Bros. Games, Batman, Superman, Wonder Woman, Harry Potter, Looney Tunes, Hanna-Barbera, Game of Thrones, and The Lord of the Rings brands. Further, it provides content through distribution platforms, including linear network, free-to-air, and broadcast television; authenticated GO applications, digital distribution arrangements, content licensing arrangements, and direct-to-consumer subscription products. Warner Bros. Discovery, Inc. was incorporated in 2008 and is headquartered in New York, New York.