Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, media and entertainment giant Time Warner (NYSE:TWX) has received the distressing two-star ranking.

With that in mind, let's take a closer look at Time Warner's business, and see what CAPS investors are saying about the stock right now.

Time Warner facts

Headquarters (founded)

New York, N.Y. (1985)

Market Cap

$28.7 billion


Movies and Entertainment

TTM Revenue

$46.9 billion


CEO Jeffrey Bewkes (since 2009)

CFO John Martin, Jr. (since 2008)

Major Properties

Time, Warner Bros. Entertainment, Time Warner Cable, AOL, HBO, TBS

Return on Equity (average, last five years and TTM)

(0.6%) and (26.6%)


Walt Disney (NYSE:DIS)

Viacom (NYSE:VIA)

News Corp. (NASDAQ:NWS)

CAPS members bearish on TWX also bearish on:

Ford Motor (NYSE:F)

General Motors (NYSE:GM)

CAPS members bullish on TWX also bullish on:

General Electric (NYSE:GE)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 21% of the 280 All-Star members who have rated Time Warner believe the stock will underperform the S&P 500 going forward. These bears include sweeneysblade and Polarimetric, both of whom are ranked in the top 15% of our community.

In late November, sweeneysblade wrote that Time Warner "has proven that it's not the smoothest run of all possible companies, and their market share might be the only thing that keeps them going. It'll be interesting to see what the future holds, but I'm going thumbs down on them."

In a more detailed pitch from January, Polarimetric helps support that bearish argument:

Everyone knows that AOL is basically worthless at the moment, which would explain why they're desperately trying to sell it off. There are simply much better products out there than their TV and Internet offerings, namely FiOS, which I expect will gradually siphon off some of Time Warner's market share as their more savvy consumers get fed up with them. I don't know anyone who uses their phone service. Their filmed entertainment division is really the only thing that's very successful, and that alone is not enough to make up for their shortcomings in everything else.

From what I can see, Time Warner will be nothing more than Warner Bros. soon enough.

What do you think about Time Warner, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Walt Disney is a Motley Fool Inside Value and Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.