Comprehensive Stock Comparison
Compare TKO Group Holdings, Inc. (TKO) 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 | TKO | 68.9% revenue growth vs WBD's -4.8% |
| Value | WBD | Better valuation composite |
| Quality / Margins | TKO | 4.1% net margin vs WBD's 1.3% |
| Stability / Safety | TKO | Beta 0.75 vs WBD's 1.73, lower leverage |
| Dividends | TKO | 0.4% yield; 1-year raise streak; WBD pays no meaningful dividend |
| Momentum (1Y) | WBD | +145.8% vs TKO's +50.1% |
| Efficiency (ROA) | TKO | 1.3% ROA vs WBD's 0.5%, ROIC 5.3% vs -9.7% |
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
TKO Group Holdings is a sports and entertainment company that operates major professional wrestling promotions including WWE and UFC. It generates revenue primarily from media rights deals and content distribution (~60%), live event ticket sales and merchandise (~25%), and sponsorships and advertising (~15%). The company's moat lies in its ownership of iconic, globally recognized wrestling and mixed martial arts brands with decades of fan loyalty and extensive content libraries.
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
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TKO leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). WBD leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
WBD is the larger business by revenue, generating $37.9B annually — 8.0x TKO's $4.7B. Profitability is closely matched — net margins range from 4.1% (TKO) to 1.3% (WBD). On growth, TKO holds the edge at +61.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TKOTKO Group Holding… | WBDWarner Bros. Disc… |
|---|---|---|
| RevenueTrailing 12 months | $4.7B | $37.9B |
| EBITDAEarnings before interest/tax | $1.3B | $16.4B |
| Net IncomeAfter-tax profit | $195M | $485M |
| Free Cash FlowCash after capex | $1.2B | $4.1B |
| Gross MarginGross profit ÷ Revenue | -43.0% | +44.0% |
| Operating MarginEBIT ÷ Revenue | +17.6% | +1.5% |
| Net MarginNet income ÷ Revenue | +4.1% | +1.3% |
| FCF MarginFCF ÷ Revenue | +26.2% | +10.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +61.6% | -6.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -144.4% | -2.1% |
Valuation Metrics
On an enterprise value basis, WBD's 10.1x EV/EBITDA is more attractive than TKO's 22.1x.
| Metric | TKOTKO Group Holding… | WBDWarner Bros. Disc… |
|---|---|---|
| Market CapShares × price | $26.0B | $76.3B |
| Enterprise ValueMkt cap + debt − cash | $29.2B | $110.5B |
| Trailing P/EPrice ÷ TTM EPS | 99.06x | -6.10x |
| Forward P/EPrice ÷ next-FY EPS est. | 37.18x | — |
| PEG RatioP/E ÷ EPS growth rate | 83.11x | — |
| EV / EBITDAEnterprise value multiple | 22.15x | 10.09x |
| Price / SalesMarket cap ÷ Revenue | 5.49x | 1.94x |
| Price / BookPrice ÷ Book value/share | 4.71x | 1.98x |
| Price / FCFMarket cap ÷ FCF | 20.23x | 17.23x |
Profitability & Efficiency
TKO delivers a 2.1% return on equity — every $100 of shareholder capital generates $2 in annual profit, vs $1 for WBD. TKO carries lower financial leverage with a 0.44x debt-to-equity ratio, signaling a more conservative balance sheet compared to WBD's 1.13x. On the Piotroski fundamental quality scale (0–9), TKO scores 5/9 vs WBD's 4/9, reflecting solid financial health.
| Metric | TKOTKO Group Holding… | WBDWarner Bros. Disc… |
|---|---|---|
| ROE (TTM)Return on equity | +2.1% | +1.3% |
| ROA (TTM)Return on assets | +1.3% | +0.5% |
| ROICReturn on invested capital | +5.3% | -9.7% |
| ROCEReturn on capital employed | +6.5% | -10.2% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.44x | 1.13x |
| Net DebtTotal debt minus cash | $3.2B | $34.2B |
| Cash & Equiv.Liquid assets | $831M | $5.3B |
| Total DebtShort + long-term debt | $4.1B | $39.5B |
| Interest CoverageEBIT ÷ Interest expense | 8.95x | 1.85x |
Total Returns (with DRIP)
A $10,000 investment in TKO five years ago would be worth $44,052 today (with dividends reinvested), compared to $4,842 for WBD. Over the past 12 months, WBD leads with a +145.8% total return vs TKO's +50.1%. The 3-year compound annual growth rate (CAGR) favors TKO at 40.0% vs WBD's 21.7% — a key indicator of consistent wealth creation.
| Metric | TKOTKO Group Holding… | WBDWarner Bros. Disc… |
|---|---|---|
| YTD ReturnYear-to-date | +8.2% | -1.2% |
| 1-Year ReturnPast 12 months | +50.1% | +145.8% |
| 3-Year ReturnCumulative with dividends | +174.1% | +80.3% |
| 5-Year ReturnCumulative with dividends | +340.5% | -51.6% |
| 10-Year ReturnCumulative with dividends | +1297.3% | +12.7% |
| CAGR (3Y)Annualised 3-year return | +40.0% | +21.7% |
Risk & Volatility
TKO is the less volatile stock with a 0.75 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. TKO currently trades 98.7% from its 52-week high vs WBD's 93.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TKOTKO Group Holding… | WBDWarner Bros. Disc… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.75x | 1.73x |
| 52-Week HighHighest price in past year | $226.92 | $30.00 |
| 52-Week LowLowest price in past year | $133.07 | $7.52 |
| % of 52W HighCurrent price vs 52-week peak | +98.7% | +93.9% |
| RSI (14)Momentum oscillator 0–100 | 63.4 | 58.5 |
| Avg Volume (50D)Average daily shares traded | 717K | 20.9M |
Analyst Outlook
Wall Street rates TKO as "Buy" and WBD as "Hold". Consensus price targets imply 4.5% upside for TKO (target: $234) vs -9.2% for WBD (target: $26). TKO is the only dividend payer here at 0.43% yield — a key consideration for income-focused portfolios.
| Metric | TKOTKO Group Holding… | WBDWarner Bros. Disc… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $233.90 | $25.59 |
| # AnalystsCovering analysts | 18 | 31 |
| Dividend YieldAnnual dividend ÷ price | +0.4% | — |
| Dividend StreakConsecutive years of raises | 1 | 1 |
| Dividend / ShareAnnual DPS | $0.95 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +3.3% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| TKO Group Holdings,… (TKO) | 100 | 428.74 | +328.7% |
| Warner Bros. Discov… (WBD) | 100 | 107.08 | +7.1% |
TKO Group Holdings,… (TKO) returned +341% over 5 years vs Warner Bros. Discov… (WBD)'s -52%. A $10,000 investment in TKO 5 years ago would be worth $44,052 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| TKO Group Holdings,… (TKO) | $729M | $4.7B | +549.3% |
| Warner Bros. Discov… (WBD) | $6.5B | $39.3B | +505.2% |
TKO Group Holdings, Inc.'s revenue grew from $729M (2016) to $4.7B (2025) — a 23.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| TKO Group Holdings,… (TKO) | 4.6% | 11.3% | +142.5% |
| Warner Bros. Discov… (WBD) | 18.4% | -28.8% | -256.5% |
TKO Group Holdings, Inc.'s net margin went from 5% (2016) to 11% (2025).
Chart 4P/E Ratio History — 7 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| TKO Group Holdings,… (TKO) | 72.8 | 92.5 | +27.1% |
| Warner Bros. Discov… (WBD) | 28.8 | 15.3 | -46.9% |
TKO Group Holdings, Inc. has traded in a 15x–93x P/E range over 7 years; current trailing P/E is ~99x. 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 | 2016 | 2025 | Change |
|---|---|---|---|
| TKO Group Holdings,… (TKO) | 0.44 | 2.26 | +413.6% |
| Warner Bros. Discov… (WBD) | 1.96 | -4.62 | -335.7% |
TKO Group Holdings, Inc.'s EPS grew from $0.44 (2016) to $2.26 (2025) — a 20% CAGR.
Chart 6Free Cash Flow — 5 Years
TKO Group Holdings, Inc. generated $1B FCF in 2025 (+823% vs 2021). Warner Bros. Discovery, Inc. generated $4B FCF in 2024 (+83% vs 2021).
TKO vs WBD: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is TKO or WBD a better buy right now?
TKO Group Holdings, Inc. (TKO) offers the better valuation at 99.1x trailing P/E (37.2x forward), making it the more compelling value choice. Analysts rate TKO Group Holdings, Inc. (TKO) a "Buy" — based on 18 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 — TKO or WBD?
Over the past 5 years, TKO Group Holdings, Inc. (TKO) delivered a total return of +340.5%, compared to -51.6% for Warner Bros. Discovery, Inc. (WBD). A $10,000 investment in TKO five years ago would be worth approximately $44K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TKO returned +1297% versus WBD's +12.7%. 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 — TKO or WBD?
By beta (market sensitivity over 5 years), TKO Group Holdings, Inc. (TKO) is the lower-risk stock at 0.75β versus Warner Bros. Discovery, Inc.'s 1.73β — meaning WBD is approximately 130% more volatile than TKO relative to the S&P 500. On balance sheet safety, TKO Group Holdings, Inc. (TKO) carries a lower debt/equity ratio of 44% versus 113% for Warner Bros. Discovery, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — TKO or WBD?
TKO Group Holdings, Inc. (TKO) is the more profitable company, earning 11.3% net margin versus -28.8% for Warner Bros. Discovery, Inc. — meaning it keeps 11.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TKO leads at 17.6% 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 TKO or WBD more undervalued right now?
Analyst consensus price targets imply the most upside for TKO: 4.5% to $233.90.
06Which pays a better dividend — TKO or WBD?
In this comparison, TKO (0.4% yield) pays a dividend. WBD does not pay a meaningful dividend and should not be held primarily for income.
07Is TKO or WBD better for a retirement portfolio?
For long-horizon retirement investors, TKO Group Holdings, Inc. (TKO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.75), +1297% 10Y return). 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 (TKO: +1297%, 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 TKO 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. 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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