Contrasting Roku (ROKU) and Live Nation Entertainment (LYV)

Roku (NASDAQ: ROKU) and Live Nation Entertainment (NYSE:LYV) are both mid-cap cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Roku N/A N/A N/A
Live Nation Entertainment 0.50% 3.33% 0.63%

Analyst Ratings

This is a breakdown of recent ratings for Roku and Live Nation Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roku 1 4 2 0 2.14
Live Nation Entertainment 0 2 8 0 2.80

Roku currently has a consensus price target of $26.20, suggesting a potential downside of 29.68%. Live Nation Entertainment has a consensus price target of $42.00, suggesting a potential downside of 4.31%. Given Live Nation Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Live Nation Entertainment is more favorable than Roku.

Institutional and Insider Ownership

16.5% of Roku shares are owned by institutional investors. Comparatively, 68.7% of Live Nation Entertainment shares are owned by institutional investors. 4.8% of Live Nation Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Roku and Live Nation Entertainment’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Roku $398.64 million 9.14 -$42.75 million ($0.71) -52.48
Live Nation Entertainment $8.35 billion 1.09 -$47.01 million N/A N/A

Roku has higher revenue, but lower earnings than Live Nation Entertainment.

Summary

Live Nation Entertainment beats Roku on 9 of the 11 factors compared between the two stocks.

About Roku

Roku, Inc. is a United States-based company engaged in creating streaming platform for delivering entertainment to the television. The Company’s products include Roku 4, Roku 3, Roku 2, Roku 1, Roku Streaming Stick and accessories, such as cables, remote controls, power adapters and headphones. Its Roku streaming players and the Roku Streaming Stick are sold through retailers in the United States, Canada, the United Kingdom, the Republic of Ireland, Mexico and France. It licenses a reference design and operating system to television manufacturers to create co-branded Roku TV models. Under the Roku Powered program, it licenses its streaming platform to pay television providers who want to use the Internet to deliver entertainment services through streaming players. It sells Roku streaming players in retail, through its licensing arrangements with television original equipment manufacturers and pay television operators.

About Live Nation Entertainment

Live Nation Entertainment, Inc. is a live entertainment company. The Company’s businesses consist of the promotion of live events, including ticketing, sponsorship and advertising. Its segments include Concerts, Sponsorship & Advertising, Ticketing and Artist Nation. The Concerts segment is engaged in promotion of live music events in its owned or operated venues and in rented third-party venues; operation and management of music venues; production of music festivals, and creation of associated content. The Ticketing segment is an agency business that sells tickets for events on behalf of its clients. The Artist Nation segment provides management services to music artists in exchange for a commission on the earnings of artists. The Sponsorship & Advertising segment employs sales force that creates and maintains relationships with sponsors to allow businesses to reach customers through its concert, venue, artist relationship and ticketing assets, including advertising on its Websites.

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