World Wrestling Entertainment (WWE) vs. Its Peers Critical Analysis
World Wrestling Entertainment (NYSE: WWE) is one of 25 public companies in the “Entertainment Production” industry, but how does it weigh in compared to its peers? We will compare World Wrestling Entertainment to related companies based on the strength of its institutional ownership, dividends, profitability, valuation, analyst recommendations, earnings and risk.
Insider and Institutional 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for World Wrestling Entertainment and its peers, as reported by MarketBeat.com.
|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||538||1247||31||2.60|
World Wrestling Entertainment presently has a consensus price target of $24.43, indicating a potential upside of 3.73%. As a group, “Entertainment Production” companies have a potential upside of 14.28%. Given World Wrestling Entertainment’s peers stronger consensus rating and higher possible upside, analysts clearly believe World Wrestling Entertainment has less favorable growth aspects than its peers.
This table compares World Wrestling Entertainment and its peers’ 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 and Volatility
World Wrestling Entertainment has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, World Wrestling Entertainment’s peers have a beta of 0.92, indicating that their average stock price is 8% less volatile than the S&P 500.
Valuation & Earnings
This table compares World Wrestling Entertainment and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|World Wrestling Entertainment||$762.15 million||$81.40 million||75.97|
|World Wrestling Entertainment Competitors||$6.27 billion||$1.49 billion||42.94|
World Wrestling Entertainment’s peers have higher revenue and earnings than World Wrestling Entertainment. World Wrestling Entertainment is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
World Wrestling Entertainment pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. 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.
World Wrestling Entertainment peers 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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