Fox vs Warner Bros. Discovery: Which Is the Stronger Buy Today?
Even as Warner Bros. Discovery surged 22% during the past Month, its peer Fox may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Fox (FOXA) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Warner Bros. Discovery (WBD) stock, suggesting you may be better off investing in FOXA
- FOXA’s quarterly revenue growth was 4.9%, vs. WBD’s 1.0%.
- In addition, its Last 12 Months revenue growth came in at 14.9%, ahead of WBD’s -3.7%.
- FOXA leads on profitability over both periods – LTM margin of 19.7% and 3-year average of 18.4%.
A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. That is one way to look at stocks. The Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure.
WBD provides diverse television content across genres like survival, nature, home, food, and travel through multiple networks in about 50 languages worldwide. FOXA operates U.S. news, sports, and entertainment channels including national cable networks for news, business, multi-sport, and soccer programming across three main segments.
Valuation & Performance Overview
| WBD | FOXA | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 58.6 | 8.9 | FOXA |
| Revenue Growth | |||
| Last Quarter | 1.0% | 4.9% | FOXA |
| Last 12 Months | -3.7% | 14.9% | FOXA |
| Last 3 Year Average | 36.1% | 5.6% | WBD |
| Operating Margins | |||
| Last 12 Months | 2.5% | 19.7% | FOXA |
| Last 3 Year Average | -1.6% | 18.4% | FOXA |
| Momentum | |||
| Last 3 Year Return | 118.2% | 126.0% | FOXA |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: WBD Revenue Comparison | FOXA Revenue Comparison
See more margin details: WBD Operating Income Comparison | FOXA Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell FOXA Stock to see if Fox’s edge holds up under the hood or if Warner Bros. Discovery still has cards to play (see Buy or Sell WBD Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| WBD Return | -8% | -22% | -60% | 20% | -7% | 114% | -31% | ||
| FOXA Return | -20% | 28% | -17% | -1% | 66% | 35% | 89% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% | <=== | |
| Monthly Win Rates [3] | |||||||||
| WBD Win Rate | 33% | 25% | 42% | 58% | 42% | 60% | 43% | ||
| FOXA Win Rate | 58% | 58% | 42% | 33% | 67% | 70% | 55% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| WBD Max Drawdown | -44% | -26% | -62% | -1% | -41% | -27% | -34% | ||
| FOXA Max Drawdown | -45% | -1% | -23% | -3% | -3% | -2% | -13% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/5/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read FOXA Dip Buyer Analyses and WBD Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.