fuboTV (NYSE:FUBO) vs. Roku (NASDAQ:ROKU) Critical Survey

fuboTV (NYSE:FUBO) and Roku (NASDAQ:ROKU) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
fuboTV	$377.20 million	0.79	-$18.87 million	($1.27)	-7.96
Roku	$4.97 billion	3.73	$88.36 million	$1.33	94.43

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

Volatility and Risk

fuboTV has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500. Comparatively, Roku has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for fuboTV and Roku, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
fuboTV	1	1	5	2	2.89
Roku	0	4	22	0	2.85

fuboTV currently has a consensus target price of $16.50, suggesting a potential upside of 63.24%. Roku has a consensus target price of $145.29, suggesting a potential upside of 15.69%. Given fuboTV’s stronger consensus rating and higher probable upside, research analysts clearly believe fuboTV is more favorable than Roku.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
fuboTV	-0.90%	-5.52%	-0.99%
Roku	4.06%	7.64%	4.61%

Insider and Institutional Ownership

39.3% of fuboTV shares are owned by institutional investors. Comparatively, 86.3% of Roku shares are owned by institutional investors. 74.3% of fuboTV shares are owned by insiders. Comparatively, 13.5% of Roku shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Roku beats fuboTV on 10 of the 15 factors compared between the two stocks.

About fuboTV

fuboTV, Inc. engages in providing subscription to sports, news, and entertainment content. It offers its services through streaming devices and on television, mobile phones, tablets, and computers. The company was founded by David Gandler, Alberto Horihuela Suarez, and Sung Ho Choi on February 20, 2009 and is headquartered in New York, NY.

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.