Entravision Communications (NYSE:EVC – Get Free Report) and Roku (NASDAQ:ROKU – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.
Insider & Institutional Ownership
69.5% of Entravision Communications shares are held by institutional investors. Comparatively, 86.3% of Roku shares are held by institutional investors. 8.3% of Entravision Communications shares are held by insiders. Comparatively, 14.0% of Roku shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Entravision Communications has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Roku has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Entravision Communications | 1 | 0 | 0 | 0 | 1.00 |
| Roku | 0 | 4 | 21 | 1 | 2.88 |
Roku has a consensus target price of $127.58, indicating a potential upside of 26.33%. Given Roku’s stronger consensus rating and higher probable upside, analysts plainly believe Roku is more favorable than Entravision Communications.
Profitability
This table compares Entravision Communications and Roku’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Entravision Communications | -17.69% | -37.01% | -7.13% |
| Roku | 1.87% | 3.40% | 2.04% |
Earnings & Valuation
This table compares Entravision Communications and Roku”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Entravision Communications | $447.59 million | 0.65 | -$79.17 million | ($0.88) | -3.60 |
| Roku | $4.74 billion | 3.14 | $88.36 million | $0.57 | 177.18 |
Roku has higher revenue and earnings than Entravision Communications. Entravision Communications is trading at a lower price-to-earnings ratio than Roku, indicating that it is currently the more affordable of the two stocks.
Summary
Roku beats Entravision Communications on 15 of the 15 factors compared between the two stocks.
About Entravision Communications
Entravision Communications Corporation operates as an advertising solutions, media, and technology company worldwide. The company operates through three segments: Digital, Television, and Audio. It reaches and engages Hispanics in the United States. The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties. It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services; and Smadex, a programmatic ad purchasing platform that enables advertisers to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces. In addition, the company provides a mobile growth solution, such as managed services to advertisers to reach mobile device users; and digital advertising solutions for advertisers. Further, it owns and operates TelevisaUnivision-affiliated television stations. The company operates various television stations; radio stations; and Spanish-language radio stations. Entravision Communications Corporation was founded in 1996 and is headquartered in Santa Monica, California.
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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