Analyzing Radio One (NASDAQ:UONE) and Warner Bros. Discovery (NASDAQ:WBD)

Radio One (NASDAQ:UONE) and Warner Bros. Discovery (NASDAQ:WBD) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Valuation and Earnings

This table compares Radio One and Warner Bros. Discovery”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radio One	$449.67 million	0.13	-$105.39 million	($3.46)	-0.38
Warner Bros. Discovery	$39.32 billion	1.32	-$11.31 billion	$0.30	70.13

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

Analyst Ratings

This is a summary of recent ratings and price targets for Radio One and Warner Bros. Discovery, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radio One	1	0	0	0	1.00
Warner Bros. Discovery	0	16	9	1	2.42

Warner Bros. Discovery has a consensus target price of $17.68, suggesting a potential downside of 15.95%. Given Warner Bros. Discovery’s stronger consensus rating and higher possible upside, analysts clearly believe Warner Bros. Discovery is more favorable than Radio One.

Volatility & Risk

Radio One has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Warner Bros. Discovery has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Radio One	-38.19%	13.04%	2.28%
Warner Bros. Discovery	2.00%	2.14%	0.74%

Institutional & Insider Ownership

8.2% of Radio One shares are owned by institutional investors. Comparatively, 60.0% of Warner Bros. Discovery shares are owned by institutional investors. 41.3% of Radio One shares are owned by company insiders. Comparatively, 1.8% of Warner Bros. Discovery shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Warner Bros. Discovery beats Radio One on 11 of the 15 factors compared between the two stocks.

About Radio One

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of April 30, 2023, it owned and/or operated 66 broadcast stations, including 55 FM or AM stations, 9 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities. The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.

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.