World Wrestling Entertainment (NYSE: WWE) is one of 25 publicly-traded companies in the “Entertainment Production” industry, but how does it weigh in compared to its competitors? We will compare World Wrestling Entertainment to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, institutional ownership, dividends and earnings.

Valuation & Earnings

This table compares World Wrestling Entertainment and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
World Wrestling Entertainment $762.15 million $81.40 million 72.39
World Wrestling Entertainment Competitors $6.27 billion $1.49 billion 42.86

World Wrestling Entertainment’s competitors have higher revenue and earnings than World Wrestling Entertainment. World Wrestling Entertainment is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations for World Wrestling Entertainment and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
World Wrestling Entertainment 1 2 6 0 2.56
World Wrestling Entertainment Competitors 142 531 1239 31 2.60

World Wrestling Entertainment presently has a consensus target price of $24.43, suggesting a potential upside of 8.86%. As a group, “Entertainment Production” companies have a potential upside of 21.04%. Given World Wrestling Entertainment’s competitors stronger consensus rating and higher probable upside, analysts plainly believe World Wrestling Entertainment has less favorable growth aspects than its competitors.

Profitability

This table compares World Wrestling Entertainment and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
World Wrestling Entertainment 3.29% 13.07% 5.51%
World Wrestling Entertainment Competitors 4.62% 11.46% 4.02%

Risk & Volatility

World Wrestling Entertainment has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, World Wrestling Entertainment’s competitors have a beta of 0.91, suggesting that their average stock price is 9% less volatile than the S&P 500.

Institutional and Insider Ownership

49.5% of World Wrestling Entertainment shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Entertainment Production” companies are owned by institutional investors. 49.8% of World Wrestling Entertainment shares are owned by insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

World Wrestling Entertainment pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. World Wrestling Entertainment pays out 154.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Entertainment Production” companies pay a dividend yield of 1.4% and pay out 29.9% of their earnings in the form of a dividend.

Summary

World Wrestling Entertainment competitors beat World Wrestling Entertainment on 8 of the 15 factors compared.

About World Wrestling Entertainment

World Wrestling Entertainment, Inc. (WWE) is an integrated media and entertainment company. The Company’s segments are Network, Television, Home Entertainment, Digital Media, Live Events, Licensing, Venue Merchandise, WWEShop, WWE Studios, and Corporate and Other. The Company is engaged in the production and distribution of content through various channels, including its WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring its brands. Its Network, Television, Home Entertainment and Digital Media are individual segments that comprise the Media Division. Its Live Events, Licensing, Venue Merchandise and WWEShop are individual segments that comprise the Consumer Products Division. Its Network segment consists of subscriptions to WWE Network. The Company’s Television segment consists of television rights fees and advertising.

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