Roku (NASDAQ: ROKU) and Live Nation Entertainment (NYSE:LYV) are both mid-cap entertainment production equipment & services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for Roku and Live Nation Entertainment, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roku 1 4 2 0 2.14
Live Nation Entertainment 0 2 8 0 2.80

Roku presently has a consensus target price of $26.20, suggesting a potential downside of 38.66%. Live Nation Entertainment has a consensus target price of $42.00, suggesting a potential downside of 6.52%. Given Live Nation Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe Live Nation Entertainment is more favorable than Roku.

Valuation & Earnings

This table compares Roku and Live Nation Entertainment’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Roku $398.64 million 10.15 -$42.75 million ($0.69) -61.90
Live Nation Entertainment $8.35 billion 1.11 -$47.01 million N/A N/A

Roku has higher revenue, but lower earnings than Live Nation Entertainment.

Insider & Institutional Ownership

0.7% of Roku shares are owned by institutional investors. Comparatively, 68.3% of Live Nation Entertainment shares are owned by institutional investors. 4.8% of Live Nation Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Roku and Live Nation Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Roku N/A N/A N/A
Live Nation Entertainment 0.50% 3.33% 0.63%

Summary

Live Nation Entertainment beats Roku on 9 of the 11 factors compared between the two stocks.

Roku Company Profile

Roku, Inc. is a United States-based company engaged in creating streaming platform for delivering entertainment to the television. The Company’s products include Roku 4, Roku 3, Roku 2, Roku 1, Roku Streaming Stick and accessories, such as cables, remote controls, power adapters and headphones. Its Roku streaming players and the Roku Streaming Stick are sold through retailers in the United States, Canada, the United Kingdom, the Republic of Ireland, Mexico and France. It licenses a reference design and operating system to television manufacturers to create co-branded Roku TV models. Under the Roku Powered program, it licenses its streaming platform to pay television providers who want to use the Internet to deliver entertainment services through streaming players. It sells Roku streaming players in retail, through its licensing arrangements with television original equipment manufacturers and pay television operators.

Live Nation Entertainment Company Profile

Live Nation Entertainment, Inc. is a live entertainment company. The Company’s businesses consist of the promotion of live events, including ticketing, sponsorship and advertising. Its segments include Concerts, Sponsorship & Advertising, Ticketing and Artist Nation. The Concerts segment is engaged in promotion of live music events in its owned or operated venues and in rented third-party venues; operation and management of music venues; production of music festivals, and creation of associated content. The Ticketing segment is an agency business that sells tickets for events on behalf of its clients. The Artist Nation segment provides management services to music artists in exchange for a commission on the earnings of artists. The Sponsorship & Advertising segment employs sales force that creates and maintains relationships with sponsors to allow businesses to reach customers through its concert, venue, artist relationship and ticketing assets, including advertising on its Websites.

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