Critical Contrast: Roku (NASDAQ:ROKU) versus iHuman (NYSE:IH)

iHuman (NYSE:IH) and Roku (NASDAQ:ROKU) are both communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of current ratings and target prices for iHuman and Roku, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iHuman	1	0	0	0	1.00
Roku	0	19	7	1	2.33

Roku has a consensus target price of $156.17, suggesting a potential downside of 0.82%. Given Roku’s stronger consensus rating and higher probable upside, analysts clearly believe Roku is more favorable than iHuman.

Volatility & Risk

iHuman has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, Roku has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.

Profitability

This table compares iHuman and Roku’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iHuman	9.35%	7.46%	5.40%
Roku	6.82%	13.73%	8.34%

Valuation & Earnings

This table compares iHuman and Roku”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iHuman	$115.40 million	0.52	$13.64 million	$0.19	6.21
Roku	$4.74 billion	4.93	$88.36 million	$2.34	67.29

Roku has higher revenue and earnings than iHuman. iHuman is trading at a lower price-to-earnings ratio than Roku, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

4.9% of iHuman shares are owned by institutional investors. Comparatively, 86.3% of Roku shares are owned by institutional investors. 63.6% of iHuman shares are owned by company insiders. Comparatively, 13.4% of Roku shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Roku beats iHuman on 13 of the 15 factors compared between the two stocks.

About iHuman

iHuman Inc. provides intellectual development products to individual users, kindergartens, and distributors in the People’s Republic of China. The company offers interactive and self-directed learning apps, including iHuman Chinese, iHuman ABC, iHuman Pinyin, iHuman Magic Thinking, iHuman Books, iHuman Stories, iHuman Reading, iHumanpedia, iHuman Kids Workout, iHuman Coding, iHuman Fun Idioms, iHuman Little Artists, iHuman Writing, iHuman Fantastic Friends, and iHuman Readers; bekids Coding, bekids Coloring, bekids Reading, bekids Puzzle, bekids Academy, and Gogo Town; and Aha World, an open-ended interactive app that nurtures a desire for discovery. It provides intellectually stimulating materials, including books, interactive materials, and smart devices that develop children’s abilities in speaking, critical thinking, independent reading, and creativity. iHuman Inc. was founded in 1996 and is based in Beijing, the People’s Republic of China.

About Roku

Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls. The Devices segment provides sale of streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories as well as licensing arrangements with service operators. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.