Phoenix New Media (NYSE:FENG – Get Free Report) and Roku (NASDAQ:ROKU – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.
Volatility and Risk
Phoenix New Media has a beta of -0.25, indicating that its stock price is 125% less volatile than the S&P 500. Comparatively, Roku has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.
Earnings and Valuation
This table compares Phoenix New Media and Roku”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phoenix New Media | $96.40 million | 0.22 | -$7.45 million | ($0.56) | -3.08 |
| Roku | $4.11 billion | 3.91 | -$129.39 million | ($0.20) | -543.60 |
Phoenix New Media has higher earnings, but lower revenue than Roku. Roku is trading at a lower price-to-earnings ratio than Phoenix New Media, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for Phoenix New Media and Roku, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phoenix New Media | 1 | 0 | 0 | 0 | 1.00 |
| Roku | 1 | 5 | 21 | 0 | 2.74 |
Roku has a consensus target price of $116.91, suggesting a potential upside of 7.54%. Given Roku’s stronger consensus rating and higher possible upside, analysts clearly believe Roku is more favorable than Phoenix New Media.
Profitability
This table compares Phoenix New Media and Roku’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phoenix New Media | -6.35% | -4.45% | -2.94% |
| Roku | -0.61% | -1.08% | -0.64% |
Insider & Institutional Ownership
6.3% of Phoenix New Media shares are owned by institutional investors. Comparatively, 86.3% of Roku shares are owned by institutional investors. 10.9% of Phoenix New Media shares are owned by company insiders. Comparatively, 14.0% of Roku shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Roku beats Phoenix New Media on 12 of the 14 factors compared between the two stocks.
About Phoenix New Media
Phoenix New Media Limited provides content on an integrated Internet platform in the People's Republic of China. The company operates through two segments, Net Advertising Services and Paid Services. It offers content and services through PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its website, ifeng.com, provides various interest-based content verticals, such as news, finance, video, automobiles, technology, entertainment, military, real estate, fashion, and sport; and offers interactive services, including comments posting and user surveys. Its mobile channel consists of ifeng News, a news application that provides newsfeeds and other contents in the form of text, image, live streaming, and video; ifeng Video, a video application, which offers video news, live broadcasting, Phoenix TV programs content, etc.; i.ifeng.com mobile Internet website; and digital reading applications. In addition, Phoenix New Media Limited offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services. The company was incorporated in 1998 and is headquartered in Beijing, the People's Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I.) Holding Limited.
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.
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