Roku, Inc. (ROKU) vs Warner Bros. Discovery, Inc. (WBD)

Roku, Inc. and Warner Bros. Discovery, Inc. are both Entertainment companies. Warner Bros. Discovery, Inc. is the larger, with a market value of $77.3B against $22.7B — 3.4× the size. Warner Bros. Discovery, Inc. has negative trailing earnings, so its P/E is not meaningful; Roku, Inc. trades at 63.6×. Roku, Inc. grew revenue faster over the last twelve months: 18.5% against −6.05%. Roku, Inc. has the higher net margin (6.82% vs −8.77%) and the higher return on invested capital (64.2% vs −1.27%). Across the 21 metrics below, Roku, Inc. leads on 15 and Warner Bros. Discovery, Inc. on 6.

Valuation

Metric ROKU WBD Entertainment median
P/E 63.62 n/m 22.03
P/S 4.34 2.15 1.47
P/B 8.00 2.28 2.00
Price to free cash flow 31.82 35.55 16.60
EV/EBITDA 33.69 7.64 9.65
EV/Sales 3.97 2.94 1.76
Earnings yield 1.57% (4.12%) (0.67%)
Free cash flow yield 3.14% 2.81% 3.26%

Profitability

Metric ROKU WBD Entertainment median
Gross margin 45.50% 47.25% 45.02%
Operating margin 5.25% (3.52%) 2.30%
Net margin 6.82% (8.77%) 0.00%
Free cash flow margin 13.63% 6.04% 1.56%
Return on equity 13.12% (8.88%) 0.00%
Return on assets 8.02% (3.18%) 0.00%
Return on invested capital 64.18% (1.27%) 0.00%

Growth

Metric ROKU WBD Entertainment median
Revenue growth (TTM) 18.52% (6.05%) 5.07%
EPS growth (last fiscal year) 166.29% 106.28% —
Revenue growth, 5-year CAGR 21.65% 28.44% 10.25%
Net income growth, 5-year CAGR 0.00% (9.82%) 0.00%

Health

Metric ROKU WBD Entertainment median
Debt to equity 0.00 0.94 0.46
Current ratio 2.87 0.78 0.86
Net debt to EBITDA (6.92) 1.53 0.72

Dividend

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

Size

Metric ROKU WBD Entertainment median
Market cap 22.71b 77.30b 1.87b

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