Contrasting Television Broadcasts (OTCMKTS:TVBCY) & Roku (NASDAQ:ROKU)

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

Analyst Recommendations

This is a summary of recent recommendations for Television Broadcasts and Roku, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Television Broadcasts	0	0	0	0	0.00
Roku	1	7	17	2	2.74

Roku has a consensus price target of $101.33, suggesting a potential upside of 1.25%. Given Roku’s stronger consensus rating and higher probable upside, analysts plainly believe Roku is more favorable than Television Broadcasts.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Television Broadcasts	$417.54 million	0.56	-$62.95 million	N/A	N/A
Roku	$4.11 billion	3.59	-$129.39 million	($0.42)	-238.29

Television Broadcasts has higher earnings, but lower revenue than Roku.

Risk & Volatility

Television Broadcasts has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Roku has a beta of 2.05, suggesting that its share price is 105% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Television Broadcasts	N/A	N/A	N/A
Roku	-1.40%	-2.44%	-1.44%

Insider & Institutional Ownership

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

Summary

Roku beats Television Broadcasts on 9 of the 13 factors compared between the two stocks.

About Television Broadcasts

Television Broadcasts Limited, together with its subsidiaries, engages in terrestrial television broadcasting, program production, and other television-related activities. It operates through Hong Kong TV Broadcasting; Over-The-Top (OTT) Streaming; e-Commerce Business; Mainland China Operations; and International Operations segments. The Hong Kong TV Broadcasting segment is involved in the broadcasting of television programmes and commercials on terrestrial TV platforms; production of programmes; operation of online social media platform; and music entertainment, and event and digital marketing activities. The OTT Streaming segment offers OTT services; and operates website portals. The e-Commerce Business segment operates e-Commerce platforms under the names Ztore, Neigbuy, and Big Big. The Mainland China Operations segment co-produces dramas; and distributes television programmes and channels to telecast, video, and media operators in Mainland China. The International Operations segment offers pay television and OTT services to subscribers; and distributes television programs and channels to telecast, video, and media operators in Malaysia, Singapore, and internationally. The company also produces motion pictures for theatrical release and distribution; and produces, sells, and licenses musical works and sound recordings. In addition, it provides artistes consultancy, management, and agency services; programme licensing services; programmes and marketing materials; film licensing and distribution services; agency services on design, production, and exhibition of advertisements, as well as film rights and management services; cultural and art development, software and IT, dealership, and corporate finance services; and satellite and subscription television programs. Further, the company engages in digital new media and trading; online sale of groceries; and property investment activities. The company was incorporated in 1965 and is based in Kowloon, Hong Kong.

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.