Roku (ROKU) vs. Its Rivals Head-To-Head Survey

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

Risk & Volatility

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

Profitability

This table compares Roku and its rivals’ 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%

Analyst Ratings

This is a summary of current ratings and price targets for Roku and its rivals, as reported by MarketBeat.

	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 price target 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 rivals stronger consensus rating and higher probable upside, analysts clearly believe Roku has less favorable growth aspects than its rivals.

Institutional & 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Roku and its rivals 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 rivals. Roku is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Roku beats its rivals 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.