Netflix vs Roku

Both Netflix and Roku have become major players in the streaming industry, with millions of subscribers worldwide. Netflix, known for its original content and vast library of movies and TV shows, has seen steady growth in its stock price over the years. On the other hand, Roku, a leading streaming device provider, has also experienced significant gains in its stock value due to the increasing demand for streaming services. Both companies are constantly innovating to stay ahead in the competitive streaming market.

Netflix or Roku?

When comparing Netflix and Roku, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Netflix and Roku.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Netflix has a dividend yield of -%, while Roku has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Netflix reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Roku reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Netflix P/E ratio at 42.79 and Roku's P/E ratio at -23.10. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Netflix P/B ratio is 13.73 while Roku's P/B ratio is 4.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Netflix has seen a 5-year revenue growth of 1.11%, while Roku's is 2.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Netflix's ROE at 32.93% and Roku's ROE at -21.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $699.78 for Netflix and $76.20 for Roku. Over the past year, Netflix's prices ranged from $344.73 to $736.00, with a yearly change of 113.50%. Roku's prices fluctuated between $48.33 and $108.84, with a yearly change of 125.20%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.