Head-To-Head Review: Roku (ROKU) vs. Its Peers

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

Profitability

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This table compares Roku and its competitors’ 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 1,300.32% 29.22% 4.80%



Analyst Recommendations

This is a summary of current ratings and target prices for Roku and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roku 2 5 2 0 2.00
Roku Competitors 298 1482 2281 75 2.52

Roku currently has a consensus price target of $36.33, indicating a potential upside of 14.00%. As a group, “Cable & other pay television services” companies have a potential upside of 22.65%. Given Roku’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Roku has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Roku and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Roku $512.76 million -$63.50 million -14.23
Roku Competitors $12.86 billion $1.94 billion 57.01

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

Institutional & Insider Ownership

10.3% of Roku shares are owned by institutional investors. Comparatively, 54.4% of shares of all “Cable & other pay television services” companies are owned by institutional investors. 11.4% of shares of all “Cable & other pay television services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Roku competitors 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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