Critical Analysis: AFC Ajax (OTCMKTS:AFCJF) versus Roku (NASDAQ:ROKU)

Roku (NASDAQ:ROKU) and AFC Ajax (OTCMKTS:AFCJF) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Institutional & Insider Ownership

86.3% of Roku shares are owned by institutional investors. 13.4% of Roku shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Roku and AFC Ajax, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roku	0	19	7	1	2.33
AFC Ajax	0	0	0	0	0.00

Roku presently has a consensus target price of $156.17, indicating a potential downside of 0.96%. Given Roku’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Roku is more favorable than AFC Ajax.

Earnings & Valuation

This table compares Roku and AFC Ajax”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roku	$4.74 billion	4.94	$88.36 million	$2.34	67.38
AFC Ajax	N/A	N/A	N/A	$0.99	10.61

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

Profitability

This table compares Roku and AFC Ajax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roku	6.82%	13.73%	8.34%
AFC Ajax	N/A	N/A	N/A

Summary

Roku beats AFC Ajax on 12 of the 12 factors compared between the two stocks.

About Roku

Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls. The Devices segment provides sale of streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories as well as licensing arrangements with service operators. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.

About AFC Ajax

AFC Ajax NV operates a football club primarily in the Netherlands. It also operates a stadium and an youth academy. The company was founded in 1900 and is based in Amsterdam, the Netherlands.