Seek Returns logo

ROKU vs. TKO: A Head-to-Head Stock Comparison

Updated on

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

Company Profile

SymbolROKUTKO
Company NameRoku, Inc.TKO Group Holdings, Inc.
CountryUnited StatesUnited States
GICS SectorCommunication ServicesCommunication Services
GICS IndustryEntertainmentEntertainment
Market Capitalization13.03 billion USD15.00 billion USD
ExchangeNasdaqGSNYSE
Listing DateSeptember 28, 2017October 19, 1999
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ROKU and TKO 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.

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

Historical Performance at a Glance

SymbolROKUTKO
5-Day Price Return1.10%-3.34%
13-Week Price Return24.90%13.10%
26-Week Price Return1.92%4.68%
52-Week Price Return42.79%58.32%
Month-to-Date Return-6.04%10.05%
Year-to-Date Return19.01%30.11%
10-Day Avg. Volume3.57M1.46M
3-Month Avg. Volume3.98M0.99M
3-Month Volatility50.79%33.19%
Beta2.160.78

Profitability

Return on Equity (TTM)

ROKU

-2.44%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

ROKU has a negative Return on Equity of -2.44%. 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.

TKO

5.09%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

TKO’s Return on Equity of 5.09% is in the lower quartile for the Entertainment industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ROKU vs. TKO: A comparison of their Return on Equity (TTM) against the Entertainment industry benchmark.

Net Profit Margin (TTM)

ROKU

-1.40%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

ROKU has a negative Net Profit Margin of -1.40%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

TKO

5.41%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

TKO’s Net Profit Margin of 5.41% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.

ROKU vs. TKO: A comparison of their Net Profit Margin (TTM) against the Entertainment industry benchmark.

Operating Profit Margin (TTM)

ROKU

-3.55%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

ROKU has a negative Operating Profit Margin of -3.55%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

TKO

21.64%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

TKO’s Operating Profit Margin of 21.64% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

ROKU vs. TKO: A comparison of their Operating Profit Margin (TTM) against the Entertainment industry benchmark.

Profitability at a Glance

SymbolROKUTKO
Return on Equity (TTM)-2.44%5.09%
Return on Assets (TTM)-1.44%1.51%
Net Profit Margin (TTM)-1.40%5.41%
Operating Profit Margin (TTM)-3.55%21.64%
Gross Profit Margin (TTM)44.04%61.98%

Financial Strength

Current Ratio (MRQ)

ROKU

2.85

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

ROKU’s Current Ratio of 2.85 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

TKO

1.30

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

TKO’s Current Ratio of 1.30 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

ROKU vs. TKO: A comparison of their Current Ratio (MRQ) against the Entertainment industry benchmark.

Debt-to-Equity Ratio (MRQ)

ROKU

0.00

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

Falling into the lower quartile for the Entertainment industry, ROKU’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

TKO

0.70

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

TKO’s Debt-to-Equity Ratio of 0.70 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ROKU vs. TKO: A comparison of their Debt-to-Equity Ratio (MRQ) against the Entertainment industry benchmark.

Interest Coverage Ratio (TTM)

ROKU

-93.67

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

ROKU has a negative Interest Coverage Ratio of -93.67. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

TKO

1.13

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

In the lower quartile for the Entertainment industry, TKO’s Interest Coverage Ratio of 1.13 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

ROKU vs. TKO: A comparison of their Interest Coverage Ratio (TTM) against the Entertainment industry benchmark.

Financial Strength at a Glance

SymbolROKUTKO
Current Ratio (MRQ)2.851.30
Quick Ratio (MRQ)2.601.20
Debt-to-Equity Ratio (MRQ)0.000.70
Interest Coverage Ratio (TTM)-93.671.13

Growth

Revenue Growth

ROKU vs. TKO: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ROKU vs. TKO: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ROKU

0.00%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
Q1
0.00%
Min
0.00%

ROKU 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.

TKO

0.17%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
Q1
0.00%
Min
0.00%

TKO’s Dividend Yield of 0.17% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.

ROKU vs. TKO: A comparison of their Dividend Yield (TTM) against the Entertainment industry benchmark.

Dividend Payout Ratio (TTM)

ROKU

0.00%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
Q1
0.00%
Min
0.00%

ROKU 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.

TKO

39.63%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
Q1
0.00%
Min
0.00%

TKO’s Dividend Payout Ratio of 39.63% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ROKU vs. TKO: A comparison of their Dividend Payout Ratio (TTM) against the Entertainment industry benchmark.

Dividend at a Glance

SymbolROKUTKO
Dividend Yield (TTM)0.00%0.17%
Dividend Payout Ratio (TTM)0.00%39.63%

Valuation

Price-to-Earnings Ratio (TTM)

ROKU

--

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

P/E Ratio data for ROKU is currently unavailable.

TKO

171.68

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

At 171.68, TKO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Entertainment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ROKU vs. TKO: A comparison of their Price-to-Earnings Ratio (TTM) against the Entertainment industry benchmark.

Price-to-Sales Ratio (TTM)

ROKU

2.98

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

In the lower quartile for the Entertainment industry, ROKU’s P/S Ratio of 2.98 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

TKO

9.28

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

TKO’s P/S Ratio of 9.28 is in the upper echelon for the Entertainment 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.

ROKU vs. TKO: A comparison of their Price-to-Sales Ratio (TTM) against the Entertainment industry benchmark.

Price-to-Book Ratio (MRQ)

ROKU

4.98

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

ROKU’s P/B Ratio of 4.98 is within the conventional range for the Entertainment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

TKO

8.44

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

TKO’s P/B Ratio of 8.44 is in the upper tier for the Entertainment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ROKU vs. TKO: A comparison of their Price-to-Book Ratio (MRQ) against the Entertainment industry benchmark.

Valuation at a Glance

SymbolROKUTKO
Price-to-Earnings Ratio (TTM)--171.68
Price-to-Sales Ratio (TTM)2.989.28
Price-to-Book Ratio (MRQ)4.988.44
Price-to-Free Cash Flow Ratio (TTM)33.6456.86