Roku (NASDAQ:ROKU) versus Saga Communications (NASDAQ:SGA) Head to Head Contrast

Saga Communications (NASDAQ:SGA) and Roku (NASDAQ:ROKU) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Saga Communications and Roku, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saga Communications	0	0	0	0	0.00
Roku	1	7	18	2	2.75

Roku has a consensus price target of $98.96, suggesting a potential upside of 15.30%. Given Roku’s stronger consensus rating and higher possible upside, analysts plainly believe Roku is more favorable than Saga Communications.

Volatility & Risk

Saga Communications has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, Roku has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500.

Insider and Institutional Ownership

74.3% of Saga Communications shares are owned by institutional investors. Comparatively, 86.3% of Roku shares are owned by institutional investors. 21.9% of Saga Communications shares are owned by insiders. Comparatively, 14.0% of Roku shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Saga Communications	3.15%	2.09%	1.56%
Roku	-1.40%	-2.47%	-1.44%

Valuation and Earnings

This table compares Saga Communications and Roku”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saga Communications	$110.29 million	0.75	$3.46 million	$0.55	23.32
Roku	$4.11 billion	3.05	-$129.39 million	($0.42)	-204.36

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

Summary

Roku beats Saga Communications on 8 of the 15 factors compared between the two stocks.

About Saga Communications

Saga Communications, Inc., a media company, engages in acquiring, developing, and operating broadcast properties in the United States. The company's radio stations employ various programming formats, including classic hits, country, classic country, hot/soft/urban adult contemporary, oldies, classic rock, rock, and news/talk. It owns and operates FM and AM radio stations, and metro signals serving various markets. Saga Communications, Inc. was incorporated in 1986 and is headquartered in Grosse Pointe Farms, Michigan.

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.