fuboTV (NYSE:FUBO – Get Free Report) and Roku (NASDAQ:ROKU – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.
Profitability
This table compares fuboTV and Roku’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| fuboTV | -0.90% | -5.52% | -0.99% |
| Roku | 4.06% | 7.64% | 4.61% |
Risk and Volatility
fuboTV has a beta of 2.41, meaning that its share price is 141% more volatile than the S&P 500. Comparatively, Roku has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| fuboTV | $377.20 million | 0.83 | -$18.87 million | ($1.27) | -8.41 |
| Roku | $4.74 billion | 3.96 | $88.36 million | $1.33 | 95.58 |
Roku has higher revenue and earnings than fuboTV. fuboTV is trading at a lower price-to-earnings ratio than Roku, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
39.3% of fuboTV shares are held by institutional investors. Comparatively, 86.3% of Roku shares are held by institutional investors. 74.3% of fuboTV shares are held by insiders. Comparatively, 13.5% of Roku shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and price targets for fuboTV and Roku, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| fuboTV | 1 | 1 | 5 | 2 | 2.89 |
| Roku | 0 | 4 | 22 | 0 | 2.85 |
fuboTV presently has a consensus target price of $16.50, indicating a potential upside of 54.55%. Roku has a consensus target price of $144.46, indicating a potential upside of 13.64%. Given fuboTV’s stronger consensus rating and higher probable upside, equities analysts plainly believe fuboTV is more favorable than Roku.
Summary
Roku beats fuboTV on 10 of the 15 factors compared between the two stocks.
About fuboTV
fuboTV, Inc. engages in providing subscription to sports, news, and entertainment content. It offers its services through streaming devices and on television, mobile phones, tablets, and computers. The company was founded by David Gandler, Alberto Horihuela Suarez, and Sung Ho Choi on February 20, 2009 and is headquartered in New York, NY.
About Roku
Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls. The Devices segment provides sale of streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories as well as licensing arrangements with service operators. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.
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