Roku vs Netflix Which Is Stronger?

Roku and Netflix are two titans in the streaming industry, each offering unique investment opportunities for savvy investors. While Netflix dominates the market with its vast content library and global reach, Roku has positioned itself as a key player in the streaming device sector. Both stocks have experienced significant growth in recent years, but the question remains - which one is the better investment? In this analysis, we will compare the performance, growth potential, and future outlook of Roku vs Netflix stocks.

Roku or Netflix?

When comparing Roku and Netflix, 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 Roku and Netflix.

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. Roku has a dividend yield of -%, while Netflix has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Roku reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Netflix 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 Roku P/E ratio at -69.84 and Netflix's P/E ratio at 50.57. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Roku P/B ratio is 4.89 while Netflix's P/B ratio is 17.32.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Roku has seen a 5-year revenue growth of 2.47%, while Netflix's is 1.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Roku's ROE at -7.22% and Netflix's ROE at 35.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $81.13 for Roku and $909.62 for Netflix. Over the past year, Roku's prices ranged from $48.33 to $100.18, with a yearly change of 107.28%. Netflix's prices fluctuated between $461.86 and $941.75, with a yearly change of 103.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.