TEGNA (NYSE:TGNA) vs. Warner Bros. Discovery (NASDAQ:WBD) Financial Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TEGNA	15.29%	17.13%	6.94%
Warner Bros. Discovery	-28.16%	-30.56%	-10.27%

Institutional and Insider Ownership

92.2% of TEGNA shares are held by institutional investors. Comparatively, 60.0% of Warner Bros. Discovery shares are held by institutional investors. 0.5% of TEGNA shares are held by company insiders. Comparatively, 1.8% of Warner Bros. Discovery shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for TEGNA and Warner Bros. Discovery, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TEGNA	0	1	3	0	2.75
Warner Bros. Discovery	0	11	11	1	2.57

TEGNA currently has a consensus target price of $20.25, indicating a potential upside of 21.51%. Warner Bros. Discovery has a consensus target price of $12.17, indicating a potential upside of 15.69%. Given TEGNA’s stronger consensus rating and higher possible upside, analysts plainly believe TEGNA is more favorable than Warner Bros. Discovery.

Earnings and Valuation

This table compares TEGNA and Warner Bros. Discovery”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TEGNA	$3.10 billion	0.86	$599.82 million	$2.84	5.87
Warner Bros. Discovery	$39.32 billion	0.66	-$11.31 billion	($4.40)	-2.39

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

Volatility & Risk

TEGNA has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Warner Bros. Discovery has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Summary

TEGNA beats Warner Bros. Discovery on 10 of the 15 factors compared between the two stocks.

About TEGNA

TEGNA Inc., a media company, provides broadcast advertising and marketing products and services for businesses. The company operates 47 television stations in 39 markets of the United States that produce local programming, such as news, sports, and entertainment. It offers local and national non-political advertising; political advertising; production of programming from third parties; production of advertising materials; and digital marketing services, as well as advertising services on the stations' Websites, tablets, and mobile products. The company also sells commercial advertising spots of its television stations. In addition, it operates Premion, an over the top local advertising network; Hatch, a centralized 360-degree marketing services agency; and radio broadcast stations. The company was formerly known as Gannett Co., Inc. and changed its name to TEGNA Inc. in June 2015. TEGNA Inc. was founded in 1906 and is headquartered in McLean, Virginia.

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.