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NWSA vs WMG

NWSA
News Corporation
NEUTRAL
Price
$25.33
Market Cap
$14.63B
Sector
Communication Services
AI Confidence
75%
WMG
Warner Music Group Corp.
NEUTRAL
Price
$28.99
Market Cap
$15.14B
Sector
Communication Services
AI Confidence
85%

Valuation

P/E Ratio
NWSA
32.47
WMG
50.86
Forward P/E
NWSA
20.39
WMG
16.4
P/B Ratio
NWSA
1.61
WMG
20.99
P/S Ratio
NWSA
1.7
WMG
2.2
EV/EBITDA
NWSA
13.15
WMG
12.9

Profitability

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

Growth

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

Financial Health

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

Dividends

Dividend Yield
NWSA
0.79%
WMG
2.62%
Payout Ratio
NWSA
25.97%
WMG
129.82%

AI Verdict

NWSA NEUTRAL

NWSA presents a conflicted profile with a stable Piotroski F-Score of 4/9 and a very healthy Debt/Equity ratio of 0.31, yet it trades at a significant premium to its Graham Number ($16.63) and Intrinsic Value ($5.46). While the company demonstrates a consistent track record of beating earnings estimates and maintains strong liquidity, the technical trend is currently bearish (0/100). The valuation is stretched relative to historical defensive metrics, though analyst targets remain optimistic at $34.05.

Strengths
Very low leverage with a Debt/Equity ratio of 0.31
Strong liquidity position with a Current Ratio of 1.81
Consistent history of earnings surprises over the last 25 quarters
Risks
Significant overvaluation relative to Graham Number ($16.63) and Intrinsic Value ($5.46)
Bearish technical trend (0/100) indicating negative short-term momentum
Low Return on Equity (ROE) of 6.33%
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

NWSA vs WMG: Head-to-Head Comparison

This page compares News Corporation (NWSA) 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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