Warner Bros. Discovery (NASDAQ:WBD – Get Free Report) and Gaia (NASDAQ:GAIA – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.
Profitability
This table compares Warner Bros. Discovery and Gaia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Warner Bros. Discovery | -4.67% | -4.77% | -1.74% |
| Gaia | -4.76% | -4.62% | -3.06% |
Analyst Ratings
This is a summary of current recommendations and price targets for Warner Bros. Discovery and Gaia, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Warner Bros. Discovery | 2 | 14 | 6 | 1 | 2.26 |
| Gaia | 1 | 0 | 0 | 0 | 1.00 |
Earnings and Valuation
This table compares Warner Bros. Discovery and Gaia”s gross 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 | 1.80 | $727.00 million | ($0.70) | -38.33 |
| Gaia | $98.95 million | 0.64 | -$4.49 million | ($0.19) | -13.21 |
Warner Bros. Discovery has higher revenue and earnings than Gaia. Warner Bros. Discovery is trading at a lower price-to-earnings ratio than Gaia, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Warner Bros. Discovery has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Gaia has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.
Insider and Institutional Ownership
60.0% of Warner Bros. Discovery shares are held by institutional investors. Comparatively, 40.5% of Gaia shares are held by institutional investors. 0.7% of Warner Bros. Discovery shares are held by company insiders. Comparatively, 26.0% of Gaia shares are held by company 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
Warner Bros. Discovery beats Gaia on 11 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 Gaia
Gaia, Inc. operates a digital video subscription service and online community for underserved member base in the United States, Canada, Australia, and internationally. The company has a digital content library with various titles in Spanish, German, and French languages available to its subscribers on internet connected devices. Its network includes Yoga channel, which provides access to streaming yoga, Eastern arts, and other movement based classes; Transformation channel that offers content in the areas of spiritual growth, personal development, and expanded consciousness; Alternative Healing channel, which features content focused on food and nutrition, holistic healing, alternative and integrative medicines, and longevity; and Seeking Truth channel that provides access to interviews and presentations in the ancient wisdom and metaphysics genre. The company was formerly known as Gaiam, Inc. and changed its name to Gaia, Inc. in July 2016. Gaia, Inc. was incorporated in 1988 and is headquartered in Louisville, Colorado.
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