Fox Corporation (FOXA) vs Roku, Inc. (ROKU)

Fox Corporation and Roku, Inc. are both Entertainment companies. Fox Corporation is the larger, with a market value of $26.8B against $23.9B — 1.1× the size. Fox Corporation trades at the lower P/E: 14.2× against 46.4×. Roku, Inc. grew revenue faster over the last twelve months: 21.1% against 9.01%. Fox Corporation has the higher net margin (11.3% vs 9.34%) and the lower return on invested capital (17.3% vs 85.0%). Across the 22 metrics below, Fox Corporation leads on 11 and Roku, Inc. on 11.

Valuation

Metric FOXA ROKU Entertainment median
P/E 14.22 46.43 24.17
P/S 1.60 4.35 1.36
P/B 2.28 7.88 1.75
Price to free cash flow 12.99 29.83 17.36
EV/EBITDA 6.99 27.33 8.85
EV/Sales 1.74 3.88 1.68
Earnings yield 7.03% 2.15% (1.47%)
Free cash flow yield 7.70% 3.35% 3.98%

Profitability

Metric FOXA ROKU Entertainment median
Gross margin 38.22% 45.34% 40.04%
Operating margin 22.56% 7.78% 2.30%
Net margin 11.30% 9.34% 0.00%
Free cash flow margin 12.28% 14.57% 4.34%
Return on equity 16.31% 18.15% 2.72%
Return on assets 8.85% 11.02% 0.00%
Return on invested capital 17.30% 84.99% 0.55%

Growth

Metric FOXA ROKU Entertainment median
Revenue growth (TTM) 9.01% 21.07% 8.28%
EPS growth (last fiscal year) (21.79%) 166.29% 9.67%
Revenue growth, 5-year CAGR 5.82% 21.65% 10.07%
Net income growth, 5-year CAGR (4.76%) 0.00% 0.00%

Health

Metric FOXA ROKU Entertainment median
Debt to equity 0.53 0.00 0.46
Current ratio 3.79 2.70 1.00
Net debt to EBITDA 0.61 (6.92) 0.97

Dividend

Metric FOXA ROKU Entertainment median
Dividend yield 0.84% — 1.23%
Payout ratio 0.12 — 0.26

Size

Metric FOXA ROKU Entertainment median
Market cap 26.82b 23.91b 3.27b

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