Financial Survey: Roku (ROKU) versus Its Rivals

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

Valuation and Earnings

This table compares Roku and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Roku	$4.74 billion	$88.36 million	66.29
Roku Competitors	$4.10 billion	$73.91 million	14.38

Roku has higher revenue and earnings than its peers. Roku is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roku	6.82%	13.73%	8.34%
Roku Competitors	11.00%	-21.29%	-2.47%

Risk & Volatility

Roku has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500. Comparatively, Roku’s peers have a beta of 1.01, indicating that their average stock price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Roku and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roku	0	18	7	1	2.35
Roku Competitors	1870	4494	9601	255	2.51

Roku currently has a consensus target price of $156.17, indicating a potential upside of 0.67%. As a group, “Entertainment” companies have a potential upside of 22.39%. Given Roku’s peers stronger consensus rating and higher possible upside, analysts clearly believe Roku has less favorable growth aspects than its peers.

Institutional and Insider Ownership

86.3% of Roku shares are owned by institutional investors. Comparatively, 36.1% of shares of all “Entertainment” companies are owned by institutional investors. 13.4% of Roku shares are owned by insiders. Comparatively, 23.6% of shares of all “Entertainment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Roku beats its peers on 8 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.