Roku (NASDAQ:ROKU – Get Free Report) and FOX (NASDAQ:FOX – Get Free Report) are both large-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
Volatility & Risk
Roku has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, FOX has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.
Valuation & Earnings
This table compares Roku and FOX”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Roku | $4.11 billion | 3.91 | -$129.39 million | ($0.20) | -544.10 |
| FOX | $16.30 billion | 1.73 | $2.26 billion | $4.45 | 14.29 |
FOX has higher revenue and earnings than Roku. Roku is trading at a lower price-to-earnings ratio than FOX, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
86.3% of Roku shares are held by institutional investors. Comparatively, 26.4% of FOX shares are held by institutional investors. 14.0% of Roku shares are held by company insiders. Comparatively, 23.1% of FOX shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Roku and FOX, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roku | 1 | 5 | 20 | 1 | 2.78 |
| FOX | 0 | 1 | 3 | 1 | 3.00 |
Roku currently has a consensus price target of $116.91, suggesting a potential upside of 7.44%. FOX has a consensus price target of $81.67, suggesting a potential upside of 28.41%. Given FOX’s stronger consensus rating and higher probable upside, analysts plainly believe FOX is more favorable than Roku.
Profitability
This table compares Roku and FOX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Roku | -0.61% | -1.08% | -0.64% |
| FOX | 12.35% | 18.61% | 9.60% |
Summary
FOX beats Roku on 10 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 FOX
Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.). The company operates through four segments: Cable Network Programming, Television, Credible, and The FOX Studio Lot. The Cable Network Programming segment produces and licenses news and sports content for distribution through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors, and other digital platforms primarily in the U.S. Television segment produces, acquires, markets, and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, and operates power broadcast television stations including duopolies and other digital platform; and produces content for third parties. The Credible segment engages in the consumer finance marketplace. The FOX Studio Lot segment provides television and film production services along with office space, studio operation services and includes all operations of the facility. The company was incorporated in 2018 and is headquartered in New York, New York.
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