Comprehensive Stock Comparison
Compare iQIYI, Inc. (IQ) vs Warner Bros. Discovery, Inc. (WBD) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | WBD | -4.8% revenue growth vs IQ's -8.3% |
| Value | WBD | Better valuation composite |
| Quality / Margins | WBD | 1.3% net margin vs IQ's -1.4% |
| Stability / Safety | IQ | Beta 1.36 vs WBD's 1.73, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | WBD | +145.8% vs IQ's -23.1% |
| Efficiency (ROA) | WBD | 0.5% ROA vs IQ's -0.9%, ROIC -9.7% vs 5.8% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
iQIYI is a leading Chinese online entertainment platform that provides streaming video content including dramas, movies, variety shows, and animations. It generates revenue primarily through membership subscriptions (around 60% of revenue) and online advertising (roughly 25%), with additional income from content distribution and other services. The company's competitive advantage lies in its massive proprietary content library — particularly its popular original productions — and its deep integration within the broader Baidu ecosystem.
Warner Bros. Discovery is a global media and entertainment conglomerate that produces and distributes content across film, television, and streaming platforms. It generates revenue primarily through three segments: Studios (film and TV production), Networks (cable and broadcast channels), and Direct-to-Consumer (streaming services like Max and discovery+). The company's key advantage is its massive content library and iconic franchises — including DC, Harry Potter, HBO originals, and Discovery's unscripted programming — which create a deep moat in an increasingly competitive streaming landscape.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
WBD leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). IQ leads in 1 (Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
WBD and IQ operate at a comparable scale, with $37.9B and $27.1B in trailing revenue. Profitability is closely matched — net margins range from 1.3% (WBD) to -1.4% (IQ).
| Metric | IQiQIYI, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| RevenueTrailing 12 months | $27.1B | $37.9B |
| EBITDAEarnings before interest/tax | $6.3B | $16.4B |
| Net IncomeAfter-tax profit | -$390M | $485M |
| Free Cash FlowCash after capex | $466M | $4.1B |
| Gross MarginGross profit ÷ Revenue | +21.9% | +44.0% |
| Operating MarginEBIT ÷ Revenue | +1.7% | +1.5% |
| Net MarginNet income ÷ Revenue | -1.4% | +1.3% |
| FCF MarginFCF ÷ Revenue | +1.7% | +10.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | -7.8% | -6.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -2.1% | -2.1% |
Valuation Metrics
On an enterprise value basis, WBD's 10.1x EV/EBITDA is more attractive than IQ's 24.2x.
| Metric | IQiQIYI, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| Market CapShares × price | $4.9B | $76.3B |
| Enterprise ValueMkt cap + debt − cash | $6.4B | $110.5B |
| Trailing P/EPrice ÷ TTM EPS | 14.25x | -6.10x |
| Forward P/EPrice ÷ next-FY EPS est. | 2.48x | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 24.24x | 10.09x |
| Price / SalesMarket cap ÷ Revenue | 1.14x | 1.94x |
| Price / BookPrice ÷ Book value/share | 0.80x | 1.98x |
| Price / FCFMarket cap ÷ FCF | 17.23x | 17.23x |
Profitability & Efficiency
WBD delivers a 1.3% return on equity — every $100 of shareholder capital generates $1 in annual profit, vs $-3 for IQ. IQ carries lower financial leverage with a 1.06x debt-to-equity ratio, signaling a more conservative balance sheet compared to WBD's 1.13x. On the Piotroski fundamental quality scale (0–9), IQ scores 5/9 vs WBD's 4/9, reflecting solid financial health.
| Metric | IQiQIYI, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| ROE (TTM)Return on equity | -2.9% | +1.3% |
| ROA (TTM)Return on assets | -0.9% | +0.5% |
| ROICReturn on invested capital | +5.8% | -9.7% |
| ROCEReturn on capital employed | +7.8% | -10.2% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 1.06x | 1.13x |
| Net DebtTotal debt minus cash | $10.7B | $34.2B |
| Cash & Equiv.Liquid assets | $3.5B | $5.3B |
| Total DebtShort + long-term debt | $14.2B | $39.5B |
| Interest CoverageEBIT ÷ Interest expense | 0.77x | 1.85x |
Total Returns (with DRIP)
A $10,000 investment in WBD five years ago would be worth $4,842 today (with dividends reinvested), compared to $629 for IQ. Over the past 12 months, WBD leads with a +145.8% total return vs IQ's -23.1%. The 3-year compound annual growth rate (CAGR) favors WBD at 21.7% vs IQ's -40.8% — a key indicator of consistent wealth creation.
| Metric | IQiQIYI, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| YTD ReturnYear-to-date | -21.2% | -1.2% |
| 1-Year ReturnPast 12 months | -23.1% | +145.8% |
| 3-Year ReturnCumulative with dividends | -79.3% | +80.3% |
| 5-Year ReturnCumulative with dividends | -93.7% | -51.6% |
| 10-Year ReturnCumulative with dividends | -89.7% | +12.7% |
| CAGR (3Y)Annualised 3-year return | -40.8% | +21.7% |
Risk & Volatility
IQ is the less volatile stock with a 1.36 beta — it tends to amplify market swings less than WBD's 1.73 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. WBD currently trades 93.9% from its 52-week high vs IQ's 56.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | IQiQIYI, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.36x | 1.73x |
| 52-Week HighHighest price in past year | $2.84 | $30.00 |
| 52-Week LowLowest price in past year | $1.50 | $7.52 |
| % of 52W HighCurrent price vs 52-week peak | +56.3% | +93.9% |
| RSI (14)Momentum oscillator 0–100 | 30.6 | 58.5 |
| Avg Volume (50D)Average daily shares traded | 7.4M | 20.9M |
Analyst Outlook
Wall Street rates IQ as "Buy" and WBD as "Hold". Consensus price targets imply 35.0% upside for IQ (target: $2) vs -9.2% for WBD (target: $26).
| Metric | IQiQIYI, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $2.16 | $25.59 |
| # AnalystsCovering analysts | 22 | 31 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | 1 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| iQIYI, Inc. (IQ) | 100 | 8.36 | -91.6% |
| Warner Bros. Discov… (WBD) | 100 | 104.24 | +4.2% |
Warner Bros. Discov… (WBD) returned -52% over 5 years vs iQIYI, Inc. (IQ)'s -94%.
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| iQIYI, Inc. (IQ) | $5.3B | $29.2B | +449.5% |
| Warner Bros. Discov… (WBD) | $6.4B | $39.3B | +515.0% |
iQIYI, Inc.'s revenue grew from $5.3B (2015) to $29.2B (2024) — a 20.8% CAGR. Warner Bros. Discovery, Inc.'s revenue grew from $6.4B (2015) to $39.3B (2024) — a 22.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| iQIYI, Inc. (IQ) | -48.4% | 2.6% | +105.4% |
| Warner Bros. Discov… (WBD) | 16.2% | -28.8% | -277.9% |
iQIYI, Inc.'s net margin went from -48% (2015) to 3% (2024). Warner Bros. Discovery, Inc.'s net margin went from 16% (2015) to -29% (2024).
Chart 4P/E Ratio History — 4 Years
| Stock | 2018 | 2021 | Change |
|---|---|---|---|
| Warner Bros. Discov… (WBD) | 28.8 | 15.3 | -46.9% |
Warner Bros. Discovery, Inc. has traded in a 11x–29x P/E range over 4 years; current trailing P/E is ~-6x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| iQIYI, Inc. (IQ) | -6.99 | 0.77 | +111.0% |
| Warner Bros. Discov… (WBD) | 1.58 | -4.62 | -392.4% |
iQIYI, Inc.'s EPS grew from $-6.99 (2015) to $0.77 (2024). Warner Bros. Discovery, Inc.'s EPS grew from $1.58 (2015) to $-4.62 (2024) — a NaN% CAGR.
Chart 6Free Cash Flow — 5 Years
iQIYI, Inc. generated $2B FCF in 2024 (+130% vs 2021). Warner Bros. Discovery, Inc. generated $4B FCF in 2024 (+83% vs 2021).
IQ vs WBD: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is IQ or WBD a better buy right now?
iQIYI, Inc. (IQ) offers the better valuation at 14.3x trailing P/E (2.5x forward), making it the more compelling value choice. Analysts rate iQIYI, Inc. (IQ) a "Buy" — based on 22 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — IQ or WBD?
Over the past 5 years, Warner Bros. Discovery, Inc. (WBD) delivered a total return of -51.6%, compared to -93.7% for iQIYI, Inc. (IQ). A $10,000 investment in WBD five years ago would be worth approximately $5K today (assuming dividends reinvested). Over 10 years, the gap is even starker: WBD returned +12.7% versus IQ's -89.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — IQ or WBD?
By beta (market sensitivity over 5 years), iQIYI, Inc. (IQ) is the lower-risk stock at 1.36β versus Warner Bros. Discovery, Inc.'s 1.73β — meaning WBD is approximately 28% more volatile than IQ relative to the S&P 500. On balance sheet safety, iQIYI, Inc. (IQ) carries a lower debt/equity ratio of 106% versus 113% for Warner Bros. Discovery, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — IQ or WBD?
iQIYI, Inc. (IQ) is the more profitable company, earning 2.6% net margin versus -28.8% for Warner Bros. Discovery, Inc. — meaning it keeps 2.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: IQ leads at 6.2% versus -25.5% for WBD. At the gross margin level — before operating expenses — WBD leads at 41.6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Is IQ or WBD more undervalued right now?
Analyst consensus price targets imply the most upside for IQ: 35.0% to $2.16.
06Which pays a better dividend — IQ or WBD?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
07Is IQ or WBD better for a retirement portfolio?
For long-horizon retirement investors, iQIYI, Inc. (IQ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Warner Bros. Discovery, Inc. (WBD) carries a higher beta of 1.73 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (IQ: -89.7%, WBD: +12.7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
08What are the main differences between IQ and WBD?
Both stocks operate in the Communication Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: IQ is a small-cap deep-value stock; WBD is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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