Better Buy: Warner Bros. Discovery vs. Walt Disney

Warner Bros. Discovery (NASDAQ: WBD) and Walt Disney (NYSE: DIS) are two giants in the entertainment industry, both with roots dating back a century. Over the decades, the rivals have competed across several media, including movies, TV shows, and comic books -- and most recently, in streaming video-on-demand content. But looking into the future, how might the companies fare, and for investors, which is the better buy? Let's break it down.Warner Bros. Discovery's debt-to-equity (D/E) ratio at the end of the first quarter of 2023 was about 1.1. That might put the company a little outside the comfort zone for some investors, but it's an improvement on its March 2022 D/E multiple of 1.2.Warner Bros. has made tackling debt a big part of its mission, with CEO David Zaslav implementing a restructuring last year that seeks to cut costs by as much as $3.5 billion. Despite this, the company is still in the red by almost $50 billion, and Zaslav has offered C-suite bonuses to executives who might be able to help lighten the debt load.Continue reading
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