NVIDIA vs Roku Which Offers More Value?

NVIDIA and Roku are two prominent companies in the tech industry, each offering unique products and services to consumers worldwide. NVIDIA, known for its powerful graphics processing units (GPUs) used for gaming and artificial intelligence, has seen steady growth in its stock value in recent years. On the other hand, Roku, a leading streaming platform provider, has also experienced significant gains in its stock price due to the increasing demand for streaming services. Both companies have solid financial standings and are poised for future growth in the ever-evolving tech market.

NVIDIA or Roku?

When comparing NVIDIA 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 NVIDIA 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. NVIDIA has a dividend yield of 0.03%, while Roku has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.02%. 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 NVIDIA P/E ratio at 67.35 and Roku's P/E ratio at -64.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NVIDIA P/B ratio is 61.39 while Roku's P/B ratio is 4.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NVIDIA has seen a 5-year revenue growth of 1.68%, while Roku's is 2.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 115.52% and Roku's ROE at -7.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $143.57 for NVIDIA and $73.85 for Roku. Over the past year, NVIDIA's prices ranged from $45.01 to $149.77, with a yearly change of 232.75%. 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.