Sifting through countless of stocks in the Entertainment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in TKO Group Holdings, Inc. or Warner Music Group Corp. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how TKO Group Holdings, Inc. and Warner Music Group Corp. compare based on key financial metrics to determine which better meets your investment needs.

About TKO Group Holdings, Inc. and Warner Music Group Corp.

TKO Group Holdings, Inc. operates as a sports and entertainment company. The company operates through three segments: UFC, WWE and IMG. The UFC segment distributes programming content; ticket sales and site fees associated with the business’s global live events; partnerships and marketing; and consumer products licensing agreements of UFC-branded products. The WWE segment consists of media rights fees associated with the distribution of its programming content; ticket sales and site fees associated with the business’s global live events; partnerships and marketing; and consumer products licensing agreements of WWE-branded products. The IMG segment specializing in media rights management and sales, multi-channel content production and distribution, brand partnerships, strategic consulting, digital services, and event management. This segment also offers hospitality business, offering ticketing, curated guest experiences, live event production and travel management services. It is also involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys. In addition, the company engages in the sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of WME Group, Inc.

Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. It operates through Recorded Music and Music Publishing segments. The company is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials. It also owns and acquires rights to approximately two million musical compositions comprising pop hits, American standards, folk songs, and motion picture and theatrical compositions, as well as administers the music and soundtracks of various third-party television and film producers and studios. In addition, the company conducts its operation primarily through a collection of record labels, such as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Nonesuch, Parlophone, Reprise, Sire, Spinnin’ Records, and Warner Classics and Warner Records Nashville. Further, it markets, distributes, and sells music and video products to retailers and wholesale distributors; independent labels to retail and wholesale distributors; and various distribution centers and ventures, as well as retail outlets, online physical retailers, streaming services, and download services. Its catalog includes songwriters and composers; and various genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, alternative, blues, gospel, and other Christian music. The company was founded in 1929 and is headquartered in New York, New York.

Latest Entertainment and TKO Group Holdings, Inc., Warner Music Group Corp. Stock News

As of September 4, 2026, TKO Group Holdings, Inc. had a $13.6 billion market capitalization, compared to the Entertainment median of $358.4 million. TKO Group Holdings, Inc.’s stock is down 11% in 2026, up 0.7% in the previous five trading days and down 2.14% in the past year.

Currently, TKO Group Holdings, Inc.’s price-earnings ratio is 65.2. TKO Group Holdings, Inc.’s trailing 12-month revenue is $5.3 billion with a 4.3% net profit margin. Year-over-year quarterly sales growth most recently was 18.2%. Analysts expect adjusted earnings to reach $3.500 per share for the current fiscal year. TKO Group Holdings, Inc. currently has a 1.7% dividend yield.

As of September 4, 2026, Warner Music Group Corp. had a $15.1 billion market cap, putting it in the 83rd percentile of all stocks. Warner Music Group Corp.’s stock is down 6.2% in 2026, up 2.7% in the previous five trading days and down 12.28% in the past year.

Currently, Warner Music Group Corp.’s price-earnings ratio is 22.8. Warner Music Group Corp.’s trailing 12-month revenue is $7.3 billion with a 9.2% net profit margin. Year-over-year quarterly sales growth most recently was 10.4%. Analysts expect adjusted earnings to reach $1.781 per share for the current fiscal year. Warner Music Group Corp. currently has a 2.8% dividend yield.

How We Compare TKO Group Holdings, Inc. and Warner Music Group Corp. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at TKO Group Holdings, Inc. and Warner Music Group Corp.’s stock grades to see how they measure up against one another.

Learn more about A+ Investor here!

Sign Up to Receive a Free Special Report Showing How A+ Grades Can Help You Make Smarter Investment Decisions

TKO Group Holdings, Inc. and Warner Music Group Corp. Stock Value Grades

Company	Ticker	Value
TKO Group Holdings, Inc.	TKO	C
Warner Music Group Corp.	WMG	D

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

TKO Group Holdings, Inc. has a Value Score of 45, which is Average. Warner Music Group Corp. has a Value Score of 33, which is Expensive.

The Value Stock Winner: No Clear Winner

Neither TKO Group Holdings, Inc. or Warner Music Group Corp. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if TKO Group Holdings, Inc. or Warner Music Group Corp. is the better investment when it comes to value.

TKO Group Holdings, Inc. and Warner Music Group Corp. Growth Grades

Company	Ticker	Growth
TKO Group Holdings, Inc.	TKO	C
Warner Music Group Corp.	WMG	A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

TKO Group Holdings, Inc. has a Growth Score of 59, which is Average. Warner Music Group Corp. has a Growth Score of 100, which is Very Strong.

The Growth Grade Winner: Warner Music Group Corp.

As you can clearly see from the Growth Grade breakdown above, Warner Music Group Corp. has a more attractive growth grade than TKO Group Holdings, Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Warner Music Group Corp. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

TKO Group Holdings, Inc. and Warner Music Group Corp.’s Quality Grades

Company	Ticker	Quality
TKO Group Holdings, Inc.	TKO	B
Warner Music Group Corp.	WMG	C

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

TKO Group Holdings, Inc. has a Quality Score of 74, which is Strong. Warner Music Group Corp. has a Quality Score of 51, which is Average.

The Quality Grade Winner: TKO Group Holdings, Inc.

As you can clearly see from the Quality Grade breakdown above, TKO Group Holdings, Inc. has a better overall quality grade than Warner Music Group Corp.. For investors who are looking for companies with higher quality than others in the same industry, TKO Group Holdings, Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other TKO Group Holdings, Inc. and Warner Music Group Corp. Grades

In addition to Growth, Value and Quality, A+ Investor also provides grades for Momentum and Estimate Revisions.

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether TKO Group Holdings, Inc. and Warner Music Group Corp. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, TKO Group Holdings, Inc. or Warner Music Group Corp. Stock?

Overall, TKO Group Holdings, Inc. stock has a Value Score of 45, Growth Score of 59 and Quality Score of 74.

Warner Music Group Corp. stock has a Value Score of 33, Growth Score of 100 and Quality Score of 51.

Comparing TKO Group Holdings, Inc. and Warner Music Group Corp.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.