Comparing Roblox (NYSE:RBLX) & Embracer Group AB (publ) (OTCMKTS:THQQF)

Embracer Group AB (publ) (OTCMKTS:THQQF) and Roblox (NYSE:RBLX) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Embracer Group AB (publ) and Roblox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embracer Group AB (publ)	N/A	N/A	N/A
Roblox	-17.60%	-292.85%	-10.13%

Earnings and Valuation

This table compares Embracer Group AB (publ) and Roblox”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embracer Group AB (publ)	N/A	N/A	N/A	N/A	N/A
Roblox	$4.89 billion	5.28	-$1.07 billion	($1.43)	-26.96

Embracer Group AB (publ) has higher earnings, but lower revenue than Roblox.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Embracer Group AB (publ) and Roblox, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embracer Group AB (publ)	0	0	0	0	0.00
Roblox	3	15	12	1	2.35

Roblox has a consensus price target of $60.89, suggesting a potential upside of 57.97%. Given Roblox’s stronger consensus rating and higher probable upside, analysts clearly believe Roblox is more favorable than Embracer Group AB (publ).

Insider & Institutional Ownership

94.5% of Roblox shares are owned by institutional investors. 10.1% of Roblox shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Roblox beats Embracer Group AB (publ) on 7 of the 10 factors compared between the two stocks.

About Embracer Group AB (publ)

Embracer Group AB (publ), together with its subsidiaries, develops and publishes PC, console, mobile, VR, and board games for the games market worldwide. The company also publishes films and comic books, as well as engages in the trading of card games. It distributes games through retailers, physical stores, and digital distributors. The company was formerly known as THQ Nordic AB (publ) and changed its name to Embracer Group AB (publ) in October 2019. Embracer Group AB (publ) was founded in 1990 and is headquartered in Karlstad, Sweden.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.