Head-To-Head Review: WWE (WWE) vs. Gaia (GAIA)

WWE (NYSE: WWE) and Gaia (NASDAQ:GAIA) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

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55.2% of WWE shares are owned by institutional investors. Comparatively, 32.0% of Gaia shares are owned by institutional investors. 45.1% of WWE shares are owned by company insiders. Comparatively, 43.4% of Gaia shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares WWE and Gaia’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WWE $801.00 million 3.61 $32.64 million $0.65 57.72
Gaia $28.29 million 9.68 -$23.27 million ($1.57) -9.97

WWE has higher revenue and earnings than Gaia. Gaia is trading at a lower price-to-earnings ratio than WWE, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for WWE and Gaia, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WWE 0 2 9 0 2.82
Gaia 0 0 3 0 3.00

WWE currently has a consensus price target of $38.25, suggesting a potential upside of 1.95%. Gaia has a consensus price target of $21.67, suggesting a potential upside of 38.45%. Given Gaia’s stronger consensus rating and higher probable upside, analysts plainly believe Gaia is more favorable than WWE.

Dividends

WWE pays an annual dividend of $0.48 per share and has a dividend yield of 1.3%. Gaia does not pay a dividend. WWE pays out 73.8% of its earnings in the form of a dividend.

Profitability

This table compares WWE and Gaia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WWE 4.07% 20.50% 8.30%
Gaia -82.26% -28.29% -24.84%

Volatility and Risk

WWE has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Gaia has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Summary

WWE beats Gaia on 11 of the 15 factors compared between the two stocks.

About WWE

World Wrestling Entertainment, Inc., an integrated media and entertainment company, engages in the sports entertainment business in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through Network, Television, Home Entertainment, Digital Media, Live Events, Licensing, Venue Merchandise, WWEShop, and WWE Studios segments. It operates WWE Network, a live streaming network that offers pay-per-view events, original programming, and video-on-demand library; and produces television programming, reality shows, and other programming, as well as produces content via home entertainment platforms, including DVD, Blu-Ray, subscription, and transactional on-demand outlets. The company also offers broadband and mobile content through its Websites and third party Websites; produces live events; and licenses various WWE themed products, such as video games, toys, apparel, books, and music. In addition, it designs, sources, markets, and distributes various WWE-branded products, such as T-shirts, belts, caps, and other novelty items; operates WWEShop, an e-commerce storefront; and WWE Studios that produces and distributes filmed entertainment content, such as movies for theatrical, home entertainment, and/or television release. World Wrestling Entertainment, Inc. was founded in 1980 and is headquartered in Stamford, Connecticut.

About Gaia

Gaia, Inc. operates a digital video subscription service and online community that caters underserved subscribers worldwide. The company has a digital content library of approximately 8,000 titles available to its subscribers on Internet-connected devices. Its subscribers have access to a library of films, documentaries, interviews, yoga classes, transformation related content, and others for digital streaming. The company's content on its network is curated into three channels, including Yoga, Transformation, and Seeking Truth; and delivered directly to subscribers through its streaming platform. It complements its produced and owned content through long term, predominately exclusive, and licensing agreements. The company was formerly known as Gaiam, Inc. and changed its name to Gaia, Inc. in July 2016. Gaia, Inc. was founded in 1988 and is based in Louisville, Colorado.

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