Roku (ROKU) versus Its Peers Head to Head Analysis

Roku (NASDAQ: ROKU) is one of 32 public companies in the “Cable & other pay television services” industry, but how does it contrast to its rivals? We will compare Roku to similar businesses based on the strength of its dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Earnings and Valuation

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This table compares Roku and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Roku $512.76 million -$63.50 million -14.60
Roku Competitors $12.86 billion $1.94 billion 55.43

Roku’s rivals have higher revenue and earnings than Roku. Roku is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

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 N/A N/A N/A
Roku Competitors 1,300.24% 29.22% 4.79%

Insider and Institutional Ownership

10.3% of Roku shares are owned by institutional investors. Comparatively, 54.2% of shares of all “Cable & other pay television services” companies are owned by institutional investors. 10.9% of shares of all “Cable & other pay television services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent 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 2 4 2 0 2.00
Roku Competitors 298 1479 2280 75 2.52

Roku currently has a consensus target price of $37.60, indicating a potential upside of 14.98%. As a group, “Cable & other pay television services” companies have a potential upside of 21.99%. Given Roku’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Roku has less favorable growth aspects than its rivals.

Summary

Roku rivals beat Roku on 12 of the 12 factors compared.

About Roku

Roku, Inc. operates a TV streaming platform. The company operates in two segments, Player and Platform. Its platform allows users to search, discover, and access approximately 500,000 movies and TV episodes, as well as live sports, music, news, and others. As of December 31, 2017, the company had 19.3 million active accounts. It also provides advertising products, including videos ads, interactive video ads, audience development promotions, and brand sponsorships; and manufactures, sells, and licenses TVs under the Roku TV name. In addition, the company offers streaming media players and accessories under the Roku brand that allow users to access its TV streaming platform; and sells branded channel buttons on remote controls. It provides its products and services through retailers and distributors, as well as directly to customers through its Website in the United States, Canada, the United Kingdom, France, the Republic of Ireland, and various Latin American countries. The company was founded in 2002 and is headquartered in Los Gatos, California.

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