Analyzing World Wrestling Entertainment (WWE) & The Competition

World Wrestling Entertainment (NYSE: WWE) is one of 25 public companies in the “Entertainment Production” industry, but how does it contrast to its competitors? We will compare World Wrestling Entertainment to related businesses based on the strength of its profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares World Wrestling Entertainment and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
World Wrestling Entertainment 3.29% 13.07% 5.51%
World Wrestling Entertainment Competitors 2.67% 10.87% 3.53%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for World Wrestling Entertainment and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
World Wrestling Entertainment 1 2 6 0 2.56
World Wrestling Entertainment Competitors 104 478 1231 24 2.64

World Wrestling Entertainment currently has a consensus price target of $24.43, indicating a potential upside of 8.14%. As a group, “Entertainment Production” companies have a potential upside of 9.89%. Given World Wrestling Entertainment’s competitors stronger consensus rating and higher probable upside, analysts clearly believe World Wrestling Entertainment has less favorable growth aspects than its competitors.

Risk & Volatility

World Wrestling Entertainment has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, World Wrestling Entertainment’s competitors have a beta of 0.92, indicating that their average share price is 8% less volatile than the S&P 500.

Valuation and Earnings

This table compares World Wrestling Entertainment and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
World Wrestling Entertainment $762.15 million $81.40 million 72.87
World Wrestling Entertainment Competitors $6.27 billion $1.49 billion 152.96

World Wrestling Entertainment’s competitors have higher revenue and earnings than World Wrestling Entertainment. World Wrestling Entertainment is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

World Wrestling Entertainment pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. World Wrestling Entertainment pays out 154.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Entertainment Production” companies pay a dividend yield of 1.4% and pay out 29.9% of their earnings in the form of a dividend.

Institutional & Insider Ownership

49.5% of World Wrestling Entertainment shares are held by institutional investors. Comparatively, 46.5% of shares of all “Entertainment Production” companies are held by institutional investors. 49.8% of World Wrestling Entertainment shares are held by insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

World Wrestling Entertainment competitors beat World Wrestling Entertainment on 9 of the 15 factors compared.

About World Wrestling Entertainment

World Wrestling Entertainment, Inc. (WWE) is an integrated media and entertainment company. The Company’s segments are Network, Television, Home Entertainment, Digital Media, Live Events, Licensing, Venue Merchandise, WWEShop, WWE Studios, and Corporate and Other. The Company is engaged in the production and distribution of content through various channels, including its WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring its brands. Its Network, Television, Home Entertainment and Digital Media are individual segments that comprise the Media Division. Its Live Events, Licensing, Venue Merchandise and WWEShop are individual segments that comprise the Consumer Products Division. Its Network segment consists of subscriptions to WWE Network. The Company’s Television segment consists of television rights fees and advertising.

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