Head-to-head contrast: Warner Music Group (WMG) versus its competitors


Warner Music Group (NASDAQ: WMGGet a rating) is one of 33 listed companies in the Entertainment and Leisure Services industry, but how does it stack up against its competitors? We will compare Warner Music Group to related companies based on the strength of its analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Insider and Institutional Ownership

22.3% of Warner Music Group shares are held by institutional investors. In comparison, 34.7% of the shares of all “Amusement and Leisure Services” companies are held by institutional investors. 76.6% of Warner Music Group shares are held by insiders. By comparison, 25.2% of the shares of all “entertainment and leisure services” companies are held by insiders. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a company will outperform the market over the long term.

Volatility and risk

Warner Music Group has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Warner Music Group’s competitors have a beta of -0.34, indicating that their average price is 134% less volatile than the S&P 500. S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of Warner Music Group and its competitors.

Net margins Return on equity return on assets
Warner Music Group 6.45% 362.14% 5.86%
Warner Music Group Competitors -2,737.81% -1.13% -206.04%

Dividends

Warner Music Group pays an annual dividend of $0.60 per share and has a dividend yield of 2.0%. Warner Music Group pays 84.5% of its earnings as a dividend, suggesting it may not have enough earnings to cover its dividend payment in the future. As a group, the “amusement and leisure services” companies pay a dividend yield of 1.9% and pay out -373.9% of their earnings as a dividend. Warner Music Group has increased its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and target prices for Warner Music Group and its competitors, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Warner Music Group 2 1 8 0 2.55
Warner Music Group Competitors 73 271 382 ten 2.45

Warner Music Group currently has a consensus target price of $44.00, indicating a potential upside of 50.02%. As a group, “amusement and recreation services” companies have an upside potential of 56.26%. Since Warner Music Group’s competitors have higher upside potential, analysts clearly believe that Warner Music Group has less favorable growth aspects than its competitors.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of Warner Music Group and its competitors.

Gross revenue Net revenue Price/earnings ratio
Warner Music Group $5.30 billion $304.00 million 41.31
Warner Music Group Competitors $996.05 million -74.95 million dollars 57.66

Warner Music Group has higher revenues and profits than its competitors. Warner Music Group trades at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Warner Music Group beats its competitors on 10 of the 15 factors compared.

About Warner Music Group (Get a rating)

Warner Music Group Corp. operates as a music entertainment company in the United States, United Kingdom, Germany and internationally. The Company operates through the Recorded Music and Music Publishing segments. The Recorded Music segment is involved in the discovery and development of recording artists, as well as the related marketing, promotion, distribution, sale and licensing of music created by such recording artists; markets its music catalog through compilations and reissues of previously released music and video titles, as well as unreleased material; and operates primarily through a collection of record labels, such as Warner Records and Atlantic Records, as well as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin’ Records, Warner Classics and Warner Music Nashville. This segment markets, distributes and sells music and video products to retailers and wholesale distributors; from independent labels to retail and wholesale distributors; and various distribution centers and businesses, as well as retail outlets, physical online retailers, streaming services, and download services. The Music Publishing segment owns and acquires the rights to approximately one million musical compositions including pop hits, American standards, folk songs, and film and theatrical compositions. Its catalog includes approximately 100,000 songwriters and composers; and various genres including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, electronic, alternative, and gospel. This segment also administers music and soundtracks from various third-party television and film producers and studios. The company was founded in 1929 and is headquartered in New York, New York.



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