Comparing Roku (NASDAQ:ROKU) & Live Nation Entertainment (LYV)

Live Nation Entertainment (NYSE: LYV) and Roku (NASDAQ:ROKU) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares Live Nation Entertainment and Roku’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Live Nation Entertainment 0.50% 3.33% 0.63%
Roku N/A N/A N/A

Institutional & Insider Ownership

68.1% of Live Nation Entertainment shares are held by institutional investors. Comparatively, 23.3% of Roku shares are held by institutional investors. 4.8% of Live Nation Entertainment shares are held by 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Live Nation Entertainment and Roku, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Live Nation Entertainment 0 2 8 0 2.80
Roku 1 4 2 0 2.14

Live Nation Entertainment currently has a consensus target price of $42.00, indicating a potential downside of 3.80%. Roku has a consensus target price of $31.00, indicating a potential downside of 21.42%. Given Live Nation Entertainment’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Live Nation Entertainment is more favorable than Roku.

Valuation and Earnings

This table compares Live Nation Entertainment and Roku’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Live Nation Entertainment $8.35 billion 1.08 -$47.01 million $0.02 2,184.09
Roku $398.64 million 9.68 -$42.75 million N/A N/A

Roku has lower revenue, but higher earnings than Live Nation Entertainment.

Summary

Live Nation Entertainment beats Roku on 9 of the 11 factors compared between the two stocks.

Live Nation Entertainment Company Profile

Live Nation Entertainment, Inc. is a live entertainment company. The Company’s businesses consist of the promotion of live events, including ticketing, sponsorship and advertising. Its segments include Concerts, Sponsorship & Advertising, Ticketing and Artist Nation. The Concerts segment is engaged in promotion of live music events in its owned or operated venues and in rented third-party venues; operation and management of music venues; production of music festivals, and creation of associated content. The Ticketing segment is an agency business that sells tickets for events on behalf of its clients. The Artist Nation segment provides management services to music artists in exchange for a commission on the earnings of artists. The Sponsorship & Advertising segment employs sales force that creates and maintains relationships with sponsors to allow businesses to reach customers through its concert, venue, artist relationship and ticketing assets, including advertising on its Websites.

Roku Company Profile

Roku, Inc. operates television streaming platform. The Company connects users to streaming content, enables content publishers to build and monetize audiences and provides advertisers with capabilities to engage consumers. Its Roku platform allows users to personalize their content selection with cable television replacement offerings and other streaming services that suit their budget and needs. Ad-supported channels available on the Roku platform include CBS News, Crackle, The CW Television Network and Vice; subscription channels include HBO Now, Hulu and Netflix, as well as traditional pay TV replacement services like DirecTV Now, Sling TV and Sony PlayStation Vue; and transactional channels include Amazon Video, Google Play and Vudu. Its product categories include advertising, Roku TVs and Streaming Players.

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