Spanish Broadcasting System (OTCMKTS:SBSAA) and Roku (NASDAQ:ROKU) Head-To-Head Contrast

Roku (NASDAQ:ROKU) and Spanish Broadcasting System (OTCMKTS:SBSAA) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for Roku and Spanish Broadcasting System, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roku	0	4	22	0	2.85
Spanish Broadcasting System	0	0	0	0	0.00

Roku presently has a consensus price target of $145.50, indicating a potential upside of 20.27%. Given Roku’s stronger consensus rating and higher probable upside, analysts clearly believe Roku is more favorable than Spanish Broadcasting System.

Institutional & Insider Ownership

86.3% of Roku shares are owned by institutional investors. 13.5% of Roku shares are owned by insiders. Comparatively, 48.3% of Spanish Broadcasting System shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Roku has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Spanish Broadcasting System has a beta of 4.08, meaning that its share price is 308% more volatile than the S&P 500.

Profitability

This table compares Roku and Spanish Broadcasting System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roku	4.06%	7.64%	4.61%
Spanish Broadcasting System	-4.05%	N/A	-1.46%

Valuation and Earnings

This table compares Roku and Spanish Broadcasting System”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	3.77	$88.36 million	$1.33	90.96
Spanish Broadcasting System	$155.06 million	0.00	$1.66 million	($0.94)	-0.01

Roku has higher revenue and earnings than Spanish Broadcasting System. Spanish Broadcasting System 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 Spanish Broadcasting System on 12 of the 14 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 Spanish Broadcasting System

Spanish Broadcasting System, Inc. operates as a Spanish-language media and entertainment company in the United States. It operates in two segments, Radio and Television. The company produces and distributes Spanish-language content, including radio programs, television shows, and music and live entertainment. It also owns and operates radio stations in the Los Angeles, New York, Puerto Rico, Chicago, Miami, Orlando, Tampa and San Francisco markets; AIRE radio networks with approximately affiliate radio stations; and television stations under the MegaTV brand, as well as has various MegaTV broadcasting outlets under affiliation or programming agreements. In addition, the company produces live concerts and events; and owns bilingual websites, including lamusica.com, Mega.tv, and various station websites that provide content related to Latin music, entertainment, news, and culture, as well as operates the LaMusica mobile app. Further, it offers Tropical, Regional Mexican, Spanish Adult Contemporary, Top 40, and Urbano format genres through its radio stations; and television programs range from televised radio-branded shows to general entertainment programs, such as music, celebrity, news, debate, interviews, and personality-based shows. The company was founded in 1983 and is based in Miami, Florida.