News Corporation (NWS) vs Roku, Inc. (ROKU)

News Corporation and Roku, Inc. are both Entertainment companies. Roku, Inc. is the larger, with a market value of $22.7B against $15.9B — 1.4× the size. News Corporation trades at the lower P/E: 30.8× against 63.6×. Roku, Inc. grew revenue faster over the last twelve months: 18.5% against 6.81%. Roku, Inc. has the higher net margin (6.82% vs 6.35%) and the higher return on invested capital (64.2% vs 7.82%). Across the 22 metrics below, News Corporation leads on 11 and Roku, Inc. on 11.

Valuation

Metric NWS ROKU Entertainment median
P/E 30.83 63.62 22.03
P/S 1.96 4.34 1.47
P/B 1.91 8.00 2.00
Price to free cash flow 21.79 31.82 16.60
EV/EBITDA 10.81 33.69 9.65
EV/Sales 1.95 3.97 1.76
Earnings yield 3.24% 1.57% (0.67%)
Free cash flow yield 4.59% 3.14% 3.26%

Profitability

Metric NWS ROKU Entertainment median
Gross margin 56.89% 45.50% 45.02%
Operating margin 12.65% 5.25% 2.30%
Net margin 6.35% 6.82% 0.00%
Free cash flow margin 8.98% 13.63% 1.56%
Return on equity 6.15% 13.12% 0.00%
Return on assets 3.69% 8.02% 0.00%
Return on invested capital 7.82% 64.18% 0.00%

Growth

Metric NWS ROKU Entertainment median
Revenue growth (TTM) 6.81% 18.52% 5.07%
EPS growth (last fiscal year) (50.24%) 166.29% —
Revenue growth, 5-year CAGR (0.72%) 21.65% 10.25%
Net income growth, 5-year CAGR 11.67% 0.00% 0.00%

Health

Metric NWS ROKU Entertainment median
Debt to equity 0.22 0.00 0.46
Current ratio 1.62 2.87 0.86
Net debt to EBITDA (0.07) (6.92) 0.72

Dividend

Metric NWS ROKU Entertainment median
Dividend yield 0.77% — 1.16%
Payout ratio 0.77 0.00 0.00

Size

Metric NWS ROKU Entertainment median
Market cap 15.88b 22.71b 1.87b

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