Comparing Gray Media (NYSE:GTN.A) and Roku (NASDAQ:ROKU)

Gray Media (NYSE:GTN.AGet Free Report) and Roku (NASDAQ:ROKUGet Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Insider and Institutional Ownership

0.3% of Gray Media shares are owned by institutional investors. Comparatively, 86.3% of Roku shares are owned by institutional investors. 13.3% of Gray Media shares are owned by insiders. Comparatively, 13.5% of Roku shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Gray Media and Roku, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gray Media 0 0 0 0 0.00
Roku 0 5 21 0 2.81

Roku has a consensus price target of $142.17, indicating a potential upside of 11.40%. Given Roku’s stronger consensus rating and higher possible upside, analysts plainly believe Roku is more favorable than Gray Media.

Profitability

This table compares Gray Media and Roku’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gray Media -2.75% -2.51% -0.53%
Roku 4.06% 7.64% 4.61%

Volatility & Risk

Gray Media has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Roku has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500.

Earnings and Valuation

This table compares Gray Media and Roku”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gray Media $3.10 billion 0.38 -$85.00 million ($1.42) -7.96
Roku $4.97 billion 3.79 $88.36 million $1.33 95.95

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

Summary

Roku beats Gray Media on 14 of the 14 factors compared between the two stocks.

About Gray Media

(Get Free Report)

Gray Television, Inc., a television broadcast company, owns and operates television stations and digital assets in the United States. As of February 28, 2019, it owned and operated television stations in 91 television markets broadcasting approximately 400 program streams, including approximately 150 channels affiliated with the CBS Network, the NBC Network, the ABC Network, and the FOX Network. The company also broadcasts secondary digital channels affiliated to ABC, CBS, and FOX, as well as channels affiliated with various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, This TV Network, Antenna TV, Telemundo, Cozi, Heroes and Icons, and MOVIES! Network; and local news/weather channels in various markets. In addition, it is also involved in the video program production, marketing, and digital businesses including Raycom Sports, Tupelo-Raycom, and RTM Studios; and production of PowerNation programs and content. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.

About Roku

(Get Free Report)

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.

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