Critical Analysis: Warner Bros. Discovery (NASDAQ:WBD) vs. Television Broadcasts (OTCMKTS:TVBCY)

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

Institutional & Insider Ownership

60.0% of Warner Bros. Discovery shares are owned by institutional investors. 1.9% of Warner Bros. Discovery shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Warner Bros. Discovery and Television Broadcasts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warner Bros. Discovery	1	11	13	3	2.64
Television Broadcasts	0	0	0	0	0.00

Warner Bros. Discovery presently has a consensus target price of $21.92, suggesting a potential downside of 8.17%. Given Warner Bros. Discovery’s stronger consensus rating and higher possible upside, analysts plainly believe Warner Bros. Discovery is more favorable than Television Broadcasts.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Warner Bros. Discovery	2.00%	2.14%	0.74%
Television Broadcasts	N/A	N/A	N/A

Volatility & Risk

Warner Bros. Discovery has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Television Broadcasts has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warner Bros. Discovery	$37.86 billion	1.56	-$11.31 billion	$0.19	125.63
Television Broadcasts	$417.54 million	0.56	-$62.95 million	N/A	N/A

Television Broadcasts has lower revenue, but higher earnings than Warner Bros. Discovery.

Summary

Warner Bros. Discovery beats Television Broadcasts on 12 of the 13 factors compared between the two stocks.

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.

About Television Broadcasts

Television Broadcasts Limited, together with its subsidiaries, engages in terrestrial television broadcasting, program production, and other television-related activities. It operates through Hong Kong TV Broadcasting; Over-The-Top (OTT) Streaming; e-Commerce Business; Mainland China Operations; and International Operations segments. The Hong Kong TV Broadcasting segment is involved in the broadcasting of television programmes and commercials on terrestrial TV platforms; production of programmes; operation of online social media platform; and music entertainment, and event and digital marketing activities. The OTT Streaming segment offers OTT services; and operates website portals. The e-Commerce Business segment operates e-Commerce platforms under the names Ztore, Neigbuy, and Big Big. The Mainland China Operations segment co-produces dramas; and distributes television programmes and channels to telecast, video, and media operators in Mainland China. The International Operations segment offers pay television and OTT services to subscribers; and distributes television programs and channels to telecast, video, and media operators in Malaysia, Singapore, and internationally. The company also produces motion pictures for theatrical release and distribution; and produces, sells, and licenses musical works and sound recordings. In addition, it provides artistes consultancy, management, and agency services; programme licensing services; programmes and marketing materials; film licensing and distribution services; agency services on design, production, and exhibition of advertisements, as well as film rights and management services; cultural and art development, software and IT, dealership, and corporate finance services; and satellite and subscription television programs. Further, the company engages in digital new media and trading; online sale of groceries; and property investment activities. The company was incorporated in 1965 and is based in Kowloon, Hong Kong.