Warner Bros. Discovery (NASDAQ:WBD) & Starz Entertainment (NASDAQ:STRZ) Head to Head Contrast

Warner Bros. Discovery (NASDAQ:WBD) and Starz Entertainment (NASDAQ:STRZ) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Earnings and Valuation

This table compares Warner Bros. Discovery and Starz Entertainment”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	$37.30 billion	2.08	$727.00 million	($1.27)	-24.30
Starz Entertainment	$1.32 billion	0.27	-$115.80 million	($25.49)	-0.83

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Warner Bros. Discovery and Starz Entertainment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warner Bros. Discovery	2	13	6	2	2.35
Starz Entertainment	1	3	4	1	2.56

Warner Bros. Discovery presently has a consensus target price of $28.34, suggesting a potential downside of 8.17%. Starz Entertainment has a consensus target price of $32.71, suggesting a potential upside of 55.26%. Given Starz Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Starz Entertainment is more favorable than Warner Bros. Discovery.

Volatility and Risk

Warner Bros. Discovery has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Starz Entertainment has a beta of 2.44, suggesting that its stock price is 144% more volatile than the S&P 500.

Institutional & Insider Ownership

60.0% of Warner Bros. Discovery shares are owned by institutional investors. 0.7% of Warner Bros. Discovery shares are owned by company insiders. Comparatively, 22.6% of Starz Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Warner Bros. Discovery and Starz Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warner Bros. Discovery	-8.77%	-8.91%	-3.20%
Starz Entertainment	-33.98%	-25.64%	-6.79%

Summary

Warner Bros. Discovery beats Starz Entertainment on 10 of the 15 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 Starz Entertainment

Starz is a premium cable and streaming network owned by Starz Entertainment, which was formerly a part of Lionsgate. Starz had about 20 million subscribers in the U.S. and Canada as of Dec. 31, 2024. The company’s franchises include “Outlander” and “Power.”