TKO Group (TKO) Competitors

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

Do insiders & institutionals have more ownership in WMG or TKO?

96.9% of Warner Music Group shares are held by institutional investors. Comparatively, 89.8% of TKO Group shares are held by institutional investors. 72.2% of Warner Music Group shares are held by company insiders. Comparatively, 61.3% of TKO Group shares are held 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.

Do analysts recommend WMG or TKO?

Warner Music Group currently has a consensus target price of $35.53, suggesting a potential upside of 9.54%. TKO Group has a consensus target price of $210.21, suggesting a potential upside of 11.75%. Given TKO Group's stronger consensus rating and higher possible upside, analysts clearly believe TKO Group is more favorable than Warner Music Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warner Music Group	1 Sell rating(s)	10 Hold rating(s)	9 Buy rating(s)	1 Strong Buy rating(s)	2.48
TKO Group	0 Sell rating(s)	5 Hold rating(s)	13 Buy rating(s)	2 Strong Buy rating(s)	2.85

Which has more risk & volatility, WMG or TKO?

Warner Music Group has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, TKO Group has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Which has preferable valuation and 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	2.61	$435M	$0.57	56.91
TKO Group	$2.80B	13.30	$9.41M	$2.42	77.73

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%

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 1.6%. 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 raised 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.

Does the media favor WMG or TKO?

In the previous week, TKO Group had 2 more articles in the media than Warner Music Group. MarketBeat recorded 11 mentions for TKO Group and 9 mentions for Warner Music Group. TKO Group's average media sentiment score of 0.74 beat Warner Music Group's score of 0.63 indicating that TKO Group is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Warner Music Group	3 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
TKO Group	4 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

TKO Group beats Warner Music Group on 11 of the 20 factors compared between the two stocks.