Netflix, Inc. (NFLX) vs Roku, Inc. (ROKU)

Netflix, Inc. and Roku, Inc. are both Entertainment companies. Netflix, Inc. is the larger, with a market value of $282.7B against $22.5B — 12.6× the size. Netflix, Inc. trades at the lower P/E: 20.8× against 63.5×. Roku, Inc. grew revenue faster over the last twelve months: 18.5% against 16.0%. Netflix, Inc. has the higher net margin (28.2% vs 6.82%) and the lower return on invested capital (27.3% vs 64.2%). Across the 22 metrics below, Netflix, Inc. leads on 12 and Roku, Inc. on 10.

Valuation

Metric NFLX ROKU Entertainment median
P/E 20.76 63.50 21.13
P/S 5.81 4.33 1.43
P/B 9.32 7.99 1.91
Price to free cash flow 27.19 31.76 16.12
EV/EBITDA 8.86 32.80 9.26
EV/Sales 5.86 3.87 1.76
Earnings yield 4.82% 1.57% (1.14%)
Free cash flow yield 3.68% 3.15% 3.35%

Profitability

Metric NFLX ROKU Entertainment median
Gross margin 49.12% 45.50% 45.02%
Operating margin 29.68% 5.25% 2.30%
Net margin 28.22% 6.82% 0.00%
Free cash flow margin 23.06% 13.63% 1.56%
Return on equity 49.54% 13.12% 0.00%
Return on assets 24.47% 8.02% 0.00%
Return on invested capital 27.31% 64.18% 0.00%

Growth

Metric NFLX ROKU Entertainment median
Revenue growth (TTM) 16.02% 18.52% 5.07%
EPS growth (last fiscal year) 27.58% 166.29% 8.33%
Revenue growth, 5-year CAGR 12.57% 21.65% 10.25%
Net income growth, 5-year CAGR 31.80% 0.00% 0.00%

Health

Metric NFLX ROKU Entertainment median
Debt to equity 0.39 0.00 0.46
Current ratio 1.14 2.87 0.86
Net debt to EBITDA 0.15 (6.92) 0.72

Dividend

Metric NFLX ROKU Entertainment median
Dividend yield — — 1.22%
Payout ratio — — 0.21

Size

Metric NFLX ROKU Entertainment median
Market cap 282.69b 22.46b 1.91b

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