Roku, Inc. (ROKU) vs Warner Music Group Corp. (WMG)

Roku, Inc. and Warner Music Group Corp. are both Entertainment companies. Roku, Inc. is the larger, with a market value of $22.7B against $14.3B — 1.6× the size. Warner Music Group Corp. trades at the lower P/E: 21.2× against 63.6×. Roku, Inc. grew revenue faster over the last twelve months: 18.5% against 12.9%. Warner Music Group Corp. has the higher net margin (9.20% vs 6.82%) and the lower return on invested capital (12.4% vs 64.2%). Across the 21 metrics below, Warner Music Group Corp. leads on 11 and Roku, Inc. on 10.

Valuation

Metric ROKU WMG Entertainment median
P/E 63.62 21.20 22.03
P/S 4.34 1.94 1.47
P/B 8.00 14.86 2.00
Price to free cash flow 31.82 16.94 16.60
EV/EBITDA 33.69 12.91 9.65
EV/Sales 3.97 2.50 1.76
Earnings yield 1.57% 4.72% (0.67%)
Free cash flow yield 3.14% 5.90% 3.26%

Profitability

Metric ROKU WMG Entertainment median
Gross margin 45.50% 45.77% 45.02%
Operating margin 5.25% 13.69% 2.30%
Net margin 6.82% 9.20% 0.00%
Free cash flow margin 13.63% 11.45% 1.56%
Return on equity 13.12% 76.15% 0.00%
Return on assets 8.02% 6.55% 0.00%
Return on invested capital 64.18% 12.39% 0.00%

Growth

Metric ROKU WMG Entertainment median
Revenue growth (TTM) 18.52% 12.91% 5.07%
EPS growth (last fiscal year) 166.29% (16.87%) —
Revenue growth, 5-year CAGR 21.65% 8.49% 10.25%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ROKU WMG Entertainment median
Debt to equity 0.00 4.94 0.46
Current ratio 2.87 0.73 0.86
Net debt to EBITDA (6.92) 3.58 0.72

Dividend

Metric ROKU WMG Entertainment median
Dividend yield — 1.51% 1.16%
Payout ratio 0.00 0.78 0.00

Size

Metric ROKU WMG Entertainment median
Market cap 22.71b 14.28b 1.87b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack