COMPARE · Reviewed July 13, 2026
APP vs WMG
Verdict: Side-by-side breakdown using the Bull Rankings model. APP scored 78.4, WMG scored 73.2 — APP leads.
Compare another set
APP
AppLovin Corporation
78.4
$442.85 · $148.8B
Score gap
5.2
APP leads
WMG
Warner Music Group Corp.
73.2
$28.75 · $15.0B
The model, pillar by pillar (0–100 each)
APP
stronger →← stronger
WMG
89
Qualityreturns · margins · balance sheet
71
98
Growthrevenue & earnings expansion
76
56
Valuevaluation vs sector peers
72
APP is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
APP
WMG
$4.4bB
FCF
$729mC+
+66.4%A
Rev
+12.6%B+
1.63C
D/E
5.08D
38.5xC+
P/E
34.2xC+
1.39B
PEG
0.53A-
Winner per row is the stronger grade in our model; a tie or a missing value shows no highlight.
Valuation · DCF cross-check
APP
WMG
150% above
Price vs fair valuelower is cheaper
60% above
~42%/yr
Growth the price implies10-yr FCF · lower = less priced in
~17%/yr
-69%
1-yr DCF upside
-40%
-60%
5-yr DCF upside
-37%
-43%
10-yr DCF upside
-34%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
APP
Why this score
- Durable high returns
WMG
Why this score
- Raising its dividend
The companies
APPAppLovin Corporation
Why now
Advertising Agencies · market cap $148.8b. Down 41% from 52-week high of $745.61 — deep drawdown territory. Revenue growing +66% — in hypergrowth territory. 30 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $654.60 (implying +48% upside).
Moat
Net margin 64% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. FCF converts 112% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. $148.8b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Down 41% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 2.48 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 38x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
WMGWarner Music Group Corp.
Why now
Entertainment · market cap $15.0b. 19% off the 52-week high of $35.42. Revenue growing +13%, comfortably above the S&P median. PEG 0.53 — paying under fair value for the growth rate. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $38.12 (implying +33% upside).
Moat
ROE 61% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 161% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
D/E 5.08 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Trailing P/E 34x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.