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APP vs. RBLX: A Head-to-Head Stock Comparison

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Here’s a clear look at APP and RBLX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

APP’s market capitalization of 115.62 billion USD is substantially larger than RBLX’s 70.26 billion USD, indicating a significant difference in their market valuations.

APP’s beta of 2.53 points to significantly higher volatility compared to RBLX (beta: 1.56), suggesting APP has greater potential for both gains and losses relative to market movements.

SymbolAPPRBLX
Company NameAppLovin CorporationRoblox Corporation
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - ApplicationElectronic Gaming & Multimedia
CEOAdam Arash ForoughiDavid Baszucki
Price341.64 USD103.59 USD
Market Cap115.62 billion USD70.26 billion USD
Beta2.531.56
ExchangeNASDAQNYSE
IPO DateApril 15, 2021March 10, 2021
ADRNoNo

Historical Performance

This chart compares the performance of APP and RBLX by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

APP vs. RBLX: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

APP

224.68%

Software - Application Industry

Max
59.01%
Q3
17.85%
Median
4.73%
Q1
-10.56%
Min
-52.94%

APP’s Return on Equity of 224.68% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

RBLX

-417.21%

Electronic Gaming & Multimedia Industry

Max
22.45%
Q3
13.61%
Median
-5.53%
Q1
-70.13%
Min
-121.78%

RBLX has a negative Return on Equity of -417.21%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

APP vs. RBLX: A comparison of their ROE against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Return on Invested Capital

APP

48.77%

Software - Application Industry

Max
35.07%
Q3
9.72%
Median
0.76%
Q1
-8.68%
Min
-34.12%

APP’s Return on Invested Capital of 48.77% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

RBLX

-27.10%

Electronic Gaming & Multimedia Industry

Max
17.62%
Q3
11.24%
Median
1.98%
Q1
-22.67%
Min
-64.64%

RBLX has a negative Return on Invested Capital of -27.10%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

APP vs. RBLX: A comparison of their ROIC against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Net Profit Margin

APP

37.39%

Software - Application Industry

Max
48.14%
Q3
16.07%
Median
1.83%
Q1
-9.60%
Min
-45.64%

A Net Profit Margin of 37.39% places APP in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.

RBLX

-22.94%

Electronic Gaming & Multimedia Industry

Max
28.20%
Q3
16.08%
Median
10.20%
Q1
-7.35%
Min
-22.94%

RBLX has a negative Net Profit Margin of -22.94%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

APP vs. RBLX: A comparison of their Net Profit Margin against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Operating Profit Margin

APP

42.86%

Software - Application Industry

Max
51.67%
Q3
15.35%
Median
1.79%
Q1
-12.42%
Min
-45.17%

An Operating Profit Margin of 42.86% places APP in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

RBLX

-26.48%

Electronic Gaming & Multimedia Industry

Max
28.10%
Q3
17.15%
Median
5.89%
Q1
-19.43%
Min
-26.48%

RBLX has a negative Operating Profit Margin of -26.48%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

APP vs. RBLX: A comparison of their Operating Margin against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Profitability at a Glance

SymbolAPPRBLX
Return on Equity (TTM)224.68%-417.21%
Return on Assets (TTM)33.64%-11.81%
Return on Invested Capital (TTM)48.77%-27.10%
Net Profit Margin (TTM)37.39%-22.94%
Operating Profit Margin (TTM)42.86%-26.48%
Gross Profit Margin (TTM)77.40%77.92%

Financial Strength

Current Ratio

APP

1.68

Software - Application Industry

Max
5.09
Q3
2.84
Median
1.70
Q1
1.12
Min
0.04

APP’s Current Ratio of 1.68 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.

RBLX

1.02

Electronic Gaming & Multimedia Industry

Max
3.22
Q3
2.77
Median
1.19
Q1
0.82
Min
0.01

RBLX’s Current Ratio of 1.02 aligns with the median group of the Electronic Gaming & Multimedia industry, indicating that its short-term liquidity is in line with its sector peers.

APP vs. RBLX: A comparison of their Current Ratio against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Debt-to-Equity Ratio

APP

6.45

Software - Application Industry

Max
1.85
Q3
0.77
Median
0.18
Q1
0.05
Min
0.00

With a Debt-to-Equity Ratio of 6.45, APP operates with exceptionally high leverage compared to the Software - Application industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

RBLX

5.81

Electronic Gaming & Multimedia Industry

Max
1.92
Q3
1.14
Median
0.31
Q1
0.17
Min
0.09

With a Debt-to-Equity Ratio of 5.81, RBLX operates with exceptionally high leverage compared to the Electronic Gaming & Multimedia industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

APP vs. RBLX: A comparison of their D/E Ratio against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Interest Coverage Ratio

APP

7.41

Software - Application Industry

Max
39.23
Q3
8.55
Median
1.48
Q1
-14.59
Min
-39.97

APP’s Interest Coverage Ratio of 7.41 is positioned comfortably within the norm for the Software - Application industry, indicating a standard and healthy capacity to cover its interest payments.

RBLX

-25.09

Electronic Gaming & Multimedia Industry

Max
20.61
Q3
4.69
Median
-1.31
Q1
-20.23
Min
-25.09

RBLX has a negative Interest Coverage Ratio of -25.09. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

APP vs. RBLX: A comparison of their Interest Coverage against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Financial Strength at a Glance

SymbolAPPRBLX
Current Ratio (TTM)1.681.02
Quick Ratio (TTM)1.681.02
Debt-to-Equity Ratio (TTM)6.455.81
Debt-to-Asset Ratio (TTM)0.650.24
Net Debt-to-EBITDA Ratio (TTM)1.20-1.05
Interest Coverage Ratio (TTM)7.41-25.09

Growth

The following charts compare key year-over-year (YoY) growth metrics for APP and RBLX. These metrics are based on the companies’ annual financial reports.

Revenue Growth

APP vs. RBLX: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

APP vs. RBLX: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

APP vs. RBLX: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

APP

0.00%

Software - Application Industry

Max
3.66%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

APP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

RBLX

0.00%

Electronic Gaming & Multimedia Industry

Max
8.44%
Q3
0.36%
Median
0.00%
Q1
0.00%
Min
0.00%

RBLX currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

APP vs. RBLX: A comparison of their Dividend Yield against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Dividend Payout Ratio

APP

0.00%

Software - Application Industry

Max
81.09%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

APP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

RBLX

0.00%

Electronic Gaming & Multimedia Industry

Max
106.44%
Q3
13.31%
Median
0.00%
Q1
0.00%
Min
0.00%

RBLX has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

APP vs. RBLX: A comparison of their Payout Ratio against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Dividend at a Glance

SymbolAPPRBLX
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio

APP

60.47

Software - Application Industry

Max
194.31
Q3
98.56
Median
51.87
Q1
22.76
Min
1.02

APP’s P/E Ratio of 60.47 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

RBLX

-79.08

Electronic Gaming & Multimedia Industry

Max
36.87
Q3
20.95
Median
12.73
Q1
7.31
Min
3.67

RBLX has a negative P/E Ratio of -79.08. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.

APP vs. RBLX: A comparison of their P/E Ratio against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Forward P/E to Growth Ratio

APP

2.46

Software - Application Industry

Max
15.44
Q3
6.57
Median
2.78
Q1
0.55
Min
0.00

APP’s Forward PEG Ratio of 2.46 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

RBLX

1.72

Electronic Gaming & Multimedia Industry

Max
2.97
Q3
2.24
Median
1.87
Q1
1.76
Min
1.76

RBLX’s Forward PEG Ratio of 1.72 is below the typical range for the Electronic Gaming & Multimedia industry. This is a strong indicator that the stock may be undervalued, as its price appears low given its future growth prospects.

APP vs. RBLX: A comparison of their Forward PEG Ratio against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Price-to-Sales Ratio

APP

22.51

Software - Application Industry

Max
23.49
Q3
11.14
Median
5.62
Q1
2.84
Min
0.33

APP’s P/S Ratio of 22.51 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

RBLX

18.32

Electronic Gaming & Multimedia Industry

Max
7.60
Q3
6.29
Median
3.76
Q1
1.02
Min
0.66

With a P/S Ratio of 18.32, RBLX trades at a valuation that eclipses even the highest in the Electronic Gaming & Multimedia industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

APP vs. RBLX: A comparison of their P/S Ratio against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Price-to-Book Ratio

APP

201.77

Software - Application Industry

Max
21.03
Q3
10.49
Median
6.36
Q1
2.89
Min
0.12

The P/B Ratio is often not a primary valuation metric for the Software - Application industry.

RBLX

223.95

Electronic Gaming & Multimedia Industry

Max
6.47
Q3
6.47
Median
4.48
Q1
1.29
Min
0.36

The P/B Ratio is often not a primary valuation metric for the Electronic Gaming & Multimedia industry.

APP vs. RBLX: A comparison of their P/B Ratio against their respective Software - Application and Electronic Gaming & Multimedia industry benchmarks.

Valuation at a Glance

SymbolAPPRBLX
Price-to-Earnings Ratio (P/E, TTM)60.47-79.08
Forward PEG Ratio (TTM)2.461.72
Price-to-Sales Ratio (P/S, TTM)22.5118.32
Price-to-Book Ratio (P/B, TTM)201.77223.95
Price-to-Free Cash Flow Ratio (P/FCF, TTM)45.6480.12
EV-to-EBITDA (TTM)45.16-115.38
EV-to-Sales (TTM)23.1318.49