Head-To-Head Contrast: Roku (ROKU) & The Competition

Roku (NASDAQ:ROKU) is one of 184 publicly-traded companies in the “Entertainment” industry, but how does it contrast to its competitors? We will compare Roku to similar businesses based on the strength of its profitability, analyst recommendations, valuation, earnings, risk, institutional ownership and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for Roku and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roku	0	18	8	1	2.37
Roku Competitors	1877	4511	9625	255	2.51

Roku currently has a consensus price target of $156.17, indicating a potential downside of 2.71%. As a group, “Entertainment” companies have a potential upside of 19.49%. Given Roku’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Roku has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

86.3% of Roku shares are held by institutional investors. Comparatively, 36.3% of shares of all “Entertainment” companies are held by institutional investors. 13.5% of Roku shares are held by company insiders. Comparatively, 24.0% of shares of all “Entertainment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Roku and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roku	9.34%	18.65%	11.41%
Roku Competitors	11.05%	-24.32%	-2.17%

Earnings & Valuation

This table compares Roku and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Roku	$5.50 billion	$88.36 million	47.49
Roku Competitors	$10.37 billion	$73.91 million	9.15

Roku’s competitors have higher revenue, but lower earnings than Roku. Roku is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Roku has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500. Comparatively, Roku’s competitors have a beta of 1.00, indicating that their average share price is 0% less volatile than the S&P 500.

Summary

Roku beats its competitors on 7 of the 13 factors compared.

Roku Company Profile

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.