ITV (OTC:ITVPY) & Warner Bros. Discovery (NASDAQ:WBD) Financial Analysis

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

Insider and Institutional Ownership

51.4% of ITV shares are owned by institutional investors. Comparatively, 60.0% of Warner Bros. Discovery shares are owned by institutional investors. 0.1% of ITV shares are owned by insiders. Comparatively, 1.8% of Warner Bros. Discovery shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ITV	N/A	N/A	N/A
Warner Bros. Discovery	-28.34%	-27.56%	-9.82%

Valuation and Earnings

This table compares ITV and Warner Bros. Discovery”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ITV	$4.50 billion	0.80	$261.22 million	N/A	N/A
Warner Bros. Discovery	$41.32 billion	0.61	-$3.13 billion	($4.58)	-2.26

ITV has higher earnings, but lower revenue than Warner Bros. Discovery.

Volatility & Risk

ITV has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Warner Bros. Discovery has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for ITV and Warner Bros. Discovery, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ITV	0	0	0	0	0.00
Warner Bros. Discovery	0	10	11	0	2.52

Warner Bros. Discovery has a consensus price target of $11.76, indicating a potential upside of 13.76%. Given Warner Bros. Discovery’s stronger consensus rating and higher probable upside, analysts clearly believe Warner Bros. Discovery is more favorable than ITV.

About ITV

ITV plc, an integrated production, broadcasting, and streaming company, which creates, owns, and distributes content on various platforms worldwide. It operates through ITV Studios and Media & Entertainment segments. The ITV Studios segment creates and produces programs and formats that include sports, drama, entertainment, factual, and news for its own channels and other broadcasters. The segment also operates as an unscripted independent producer of content in the United States; and produces content for local broadcasters and international OTT platforms in Canada, Australia, Germany, France, Italy, Spain, the Netherlands, Sweden, Norway, Finland, and Denmark. In addition, this segment engages in licensing its finished programmes, formats, and third-party content internationally, as well as finances productions. The Media & Entertainment segment broadcasts and streams various contents on its family of free-to-air TV channels; and offers television advertising services. The company also delivers content through linear television broadcasting, as well as on the ITV Hub, BritBox UK, ITVX, catch up services on pay platforms, and through direct content deals. In addition, this segment offers online advertising, HD digital channel on pay platform, and ITV Premium subscription services. The company was founded in 1955 is based in London, the United Kingdom.

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.