Financial Analysis: Roku (NASDAQ:ROKU) and Corus Entertainment (OTCMKTS:CJREF)

Roku (NASDAQ:ROKUGet Free Report) and Corus Entertainment (OTCMKTS:CJREFGet Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares Roku and Corus Entertainment”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Roku $4.74 billion 2.79 $88.36 million $0.57 157.21
Corus Entertainment $807.48 million 0.01 -$235.20 million ($1.28) -0.02

Roku has higher revenue and earnings than Corus Entertainment. Corus Entertainment 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

86.3% of Roku shares are held by institutional investors. 14.0% of Roku shares are held by insiders. Comparatively, 3.5% of Corus Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Roku has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500. Comparatively, Corus Entertainment has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Roku 1.87% 3.40% 2.04%
Corus Entertainment -33.38% N/A -6.81%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Roku and Corus Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roku 0 4 23 1 2.89
Corus Entertainment 0 0 0 0 0.00

Roku currently has a consensus price target of $123.96, suggesting a potential upside of 38.33%. Given Roku’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Roku is more favorable than Corus Entertainment.

Summary

Roku beats Corus Entertainment on 15 of the 15 factors compared between the two stocks.

About Roku

(Get Free Report)

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.

About Corus Entertainment

(Get Free Report)

Corus Entertainment Inc., a media and content company, operates specialty and conventional television networks, and radio stations in Canada and internationally. It operates in two segments, Television and Radio. The Television segment consists of specialty television networks, conventional television stations, digital and streaming platforms, a social digital agency, and a social media creator network; and provides technology and media services. This segment also engages in the production and distribution of films and television programs; merchandise licensing and book publishing activities; and provision of advertising services, subscriptions, and the licensing of proprietary films and television programs, as well as production services. The Radio segment operates radio stations that include a network of news/talk radio stations, as well as classic hits, rock, country, and hot adult contemporary radio formats. The company produces and distributes children’s animated content and consumer products; owns Nelvana, Corus Studios, Aircraft Pictures, Kid Can Press, so.da, and Kin Community Canada, and Quay Media Services; and operates companion websites, digital and streaming platforms, and applications that are related to its brands. Corus Entertainment Inc. was incorporated in 1998 and is headquartered in Toronto, Canada.

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