Warner Music Group (WMG) Competitors

Warner Music Group (NASDAQ:WMG) and TKO Group (NYSE:TKO) are both large-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations, risk and media sentiment.

Is WMG or TKO a better dividend stock?

Warner Music Group pays an annual dividend of $0.76 per share and has a dividend yield of 2.3%. TKO Group pays an annual dividend of $3.04 per share and has a dividend yield of 1.5%. Warner Music Group pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TKO Group pays out 125.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Warner Music Group has increased its dividend for 4 consecutive years. Warner Music Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has more volatility & risk, WMG or TKO?

Warner Music Group has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, TKO Group has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Is WMG or TKO more profitable?

TKO Group has a net margin of 5.40% compared to Warner Music Group's net margin of 4.59%. Warner Music Group's return on equity of 39.95% beat TKO Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Warner Music Group	4.59%	39.95%	3.16%
TKO Group	5.40%	2.82%	1.91%

Does the media favor WMG or TKO?

In the previous week, TKO Group had 30 more articles in the media than Warner Music Group. MarketBeat recorded 37 mentions for TKO Group and 7 mentions for Warner Music Group. Warner Music Group's average media sentiment score of 1.31 beat TKO Group's score of 0.88 indicating that Warner Music Group is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Warner Music Group	6 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
TKO Group	15 Very Positive mention(s)	3 Positive mention(s)	13 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts rate WMG or TKO?

Warner Music Group presently has a consensus target price of $34.65, suggesting a potential upside of 3.73%. TKO Group has a consensus target price of $196.50, suggesting a potential downside of 2.78%. Given Warner Music Group's higher possible upside, research analysts plainly believe Warner Music Group is more favorable than TKO Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warner Music Group	0 Sell rating(s)	10 Hold rating(s)	8 Buy rating(s)	1 Strong Buy rating(s)	2.53
TKO Group	0 Sell rating(s)	4 Hold rating(s)	14 Buy rating(s)	1 Strong Buy rating(s)	2.84

Do institutionals & insiders believe in WMG or TKO?

96.9% of Warner Music Group shares are owned by institutional investors. Comparatively, 89.8% of TKO Group shares are owned by institutional investors. 72.2% of Warner Music Group shares are owned by company insiders. Comparatively, 61.3% of TKO Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Which has better valuation & earnings, WMG or TKO?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warner Music Group	$6.47B	2.69	$435M	$0.57	58.60
TKO Group	$2.80B	14.29	$9.41M	$2.42	83.52

Summary

Warner Music Group beats TKO Group on 11 of the 19 factors compared between the two stocks.