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NWS vs WMG

NWS
News Corporation
BEARISH
Price
$29.15
Market Cap
$16.0B
Sector
Communication Services
AI Confidence
85%
WMG
Warner Music Group Corp.
NEUTRAL
Price
$28.99
Market Cap
$15.14B
Sector
Communication Services
AI Confidence
85%

Valuation

P/E Ratio
NWS
37.37
WMG
50.86
Forward P/E
NWS
23.46
WMG
16.4
P/B Ratio
NWS
1.85
WMG
20.99
P/S Ratio
NWS
1.86
WMG
2.2
EV/EBITDA
NWS
14.93
WMG
12.9

Profitability

Gross Margin
NWS
56.67%
WMG
45.87%
Operating Margin
NWS
17.06%
WMG
17.77%
Profit Margin
NWS
13.35%
WMG
4.43%
ROE
NWS
6.33%
WMG
39.84%
ROA
NWS
3.94%
WMG
7.12%

Growth

Revenue Growth
NWS
5.5%
WMG
10.4%
Earnings Growth
NWS
-9.9%
WMG
-25.9%

Financial Health

Debt/Equity
NWS
0.31
WMG
5.56
Current Ratio
NWS
1.81
WMG
0.7
Quick Ratio
NWS
1.58
WMG
0.49

Dividends

Dividend Yield
NWS
0.69%
WMG
2.62%
Payout Ratio
NWS
25.97%
WMG
129.82%

AI Verdict

NWS BEARISH

NWS presents a stable but stagnant financial profile, characterized by a Piotroski F-Score of 4/9 and a strong balance sheet with low leverage (Debt/Equity 0.31). However, the stock is severely overvalued, trading at $29.15 despite a Graham Number of $16.63 and a growth-based intrinsic value of $5.46. Negative earnings growth (-9.90%) and a completely bearish technical trend (0/100) suggest the current price is unsustainable. While the company has a strong track record of beating earnings estimates, the lack of fundamental growth to support a 37.37 P/E ratio creates significant downside risk.

Strengths
Strong liquidity with a Current Ratio of 1.81
Low financial leverage (Debt/Equity 0.31)
Consistent history of beating quarterly earnings estimates
Risks
Extreme valuation gap relative to Graham Number ($16.63) and Intrinsic Value ($5.46)
Negative earnings growth (-9.90% YoY)
Bearish technical trend (0/100 score)
WMG NEUTRAL

WMG exhibits a significant divergence between its fundamental value and market pricing. With a Piotroski F-Score of 4/9 (Stable) and a Graham Number of $4.21, the stock is trading at a massive premium to its defensive fair value. While strong ROE and a low PEG ratio suggest growth potential, the company's financial health is strained by a high Debt/Equity ratio of 5.56 and an unsustainable dividend payout ratio of 129.82%.

Strengths
Strong Return on Equity (ROE) of 39.84%
Positive revenue growth of 10.40% YoY
Attractive PEG ratio of 0.77, suggesting growth is undervalued relative to price
Risks
Extreme leverage with a Debt/Equity ratio of 5.56
Liquidity risk indicated by a Current Ratio of 0.70
Unsustainable dividend payout ratio of 129.82%

Compare Another Pair

NWS vs WMG: Head-to-Head Comparison

This page compares News Corporation (NWS) and Warner Music Group Corp. (WMG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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