Roku vs Trade Desk Which Should You Buy?

Roku and Trade Desk are two prominent companies in the tech industry, each specializing in different aspects of advertising and entertainment. Roku is known for its streaming platform and smart TV technology, while Trade Desk offers a comprehensive digital advertising platform. Both stocks have experienced significant growth in recent years, attracting investors looking to capitalize on the increasing demand for streaming services and digital advertising. In this comparison, we will delve into the key differences and similarities between these two stocks to help investors make informed decisions.

Roku or Trade Desk?

When comparing Roku and Trade Desk, 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 Trade Desk.

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 Trade Desk 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, Trade Desk 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 -64.66 and Trade Desk's P/E ratio at 206.33. 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 4.52 while Trade Desk's P/B ratio is 24.22.

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 Trade Desk's is 2.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Roku's ROE at -7.22% and Trade Desk's ROE at 13.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $73.85 for Roku and $125.13 for Trade Desk. Over the past year, Roku's prices ranged from $48.33 to $108.84, with a yearly change of 125.20%. Trade Desk's prices fluctuated between $61.48 and $132.65, with a yearly change of 115.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.