Roku, Inc. (ROKU) vs TKO Group Holdings, Inc. (TKO)

Roku, Inc. and TKO Group Holdings, Inc. are both Entertainment companies. TKO Group Holdings, Inc. is the larger, with a market value of $35.0B against $22.7B — 1.5× the size. TKO Group Holdings, Inc. trades at the lower P/E: 61.1× against 63.6×. Roku, Inc. grew revenue faster over the last twelve months: 18.5% against 5.07%. Roku, Inc. has the higher net margin (6.82% vs 4.33%) and the higher return on invested capital (64.2% vs 5.35%). Across the 22 metrics below, TKO Group Holdings, Inc. leads on 14 and Roku, Inc. on 8.

Valuation

Metric ROKU TKO Entertainment median
P/E 63.62 61.09 22.03
P/S 4.34 2.58 1.47
P/B 8.00 1.64 2.00
Price to free cash flow 31.82 8.17 16.60
EV/EBITDA 33.69 10.90 9.65
EV/Sales 3.97 3.20 1.76
Earnings yield 1.57% 1.64% (0.67%)
Free cash flow yield 3.14% 12.24% 3.26%

Profitability

Metric ROKU TKO Entertainment median
Gross margin 45.50% 59.46% 45.02%
Operating margin 5.25% 18.82% 2.30%
Net margin 6.82% 4.33% 0.00%
Free cash flow margin 13.63% 31.55% 1.56%
Return on equity 13.12% 2.46% 0.00%
Return on assets 8.02% 1.45% 0.00%
Return on invested capital 64.18% 5.35% 0.00%

Growth

Metric ROKU TKO Entertainment median
Revenue growth (TTM) 18.52% 5.07% 5.07%
EPS growth (last fiscal year) 166.29% 11,200.00% —
Revenue growth, 5-year CAGR 21.65% 37.19% 10.25%
Net income growth, 5-year CAGR 0.00% 8.20% 0.00%

Health

Metric ROKU TKO Entertainment median
Debt to equity 0.00 0.58 0.46
Current ratio 2.87 1.28 0.86
Net debt to EBITDA (6.92) 2.07 0.72

Dividend

Metric ROKU TKO Entertainment median
Dividend yield — 0.28% 1.16%
Payout ratio 0.00 0.23 0.00

Size

Metric ROKU TKO Entertainment median
Market cap 22.71b 35.03b 1.87b

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