Spanish Broadcasting System (OTCMKTS:SBSAA – Get Free Report) and Roku (NASDAQ:ROKU – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.
Profitability
This table compares Spanish Broadcasting System and Roku’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Spanish Broadcasting System | -4.05% | N/A | -1.46% |
| Roku | 4.06% | 7.64% | 4.61% |
Analyst Recommendations
This is a breakdown of recent recommendations for Spanish Broadcasting System and Roku, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Spanish Broadcasting System | 0 | 0 | 0 | 0 | 0.00 |
| Roku | 0 | 5 | 21 | 0 | 2.81 |
Insider & Institutional Ownership
86.3% of Roku shares are owned by institutional investors. 48.3% of Spanish Broadcasting System shares are owned by company insiders. Comparatively, 13.5% of Roku shares are owned by company 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.
Earnings & Valuation
This table compares Spanish Broadcasting System and Roku”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Spanish Broadcasting System | $155.06 million | 0.00 | $1.66 million | ($0.94) | -0.03 |
| Roku | $4.74 billion | 3.91 | $88.36 million | $1.33 | 94.40 |
Roku has higher revenue and earnings than Spanish Broadcasting System. Spanish Broadcasting System is trading at a lower price-to-earnings ratio than Roku, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Spanish Broadcasting System has a beta of 4.55, meaning that its share price is 355% more volatile than the S&P 500. Comparatively, Roku has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500.
Summary
Roku beats Spanish Broadcasting System on 12 of the 14 factors compared between the two stocks.
About Spanish Broadcasting System
Spanish Broadcasting System, Inc. operates as a Spanish-language media and entertainment company in the United States. It operates in two segments, Radio and Television. The company produces and distributes Spanish-language content, including radio programs, television shows, and music and live entertainment. It also owns and operates radio stations in the Los Angeles, New York, Puerto Rico, Chicago, Miami, Orlando, Tampa and San Francisco markets; AIRE radio networks with approximately affiliate radio stations; and television stations under the MegaTV brand, as well as has various MegaTV broadcasting outlets under affiliation or programming agreements. In addition, the company produces live concerts and events; and owns bilingual websites, including lamusica.com, Mega.tv, and various station websites that provide content related to Latin music, entertainment, news, and culture, as well as operates the LaMusica mobile app. Further, it offers Tropical, Regional Mexican, Spanish Adult Contemporary, Top 40, and Urbano format genres through its radio stations; and television programs range from televised radio-branded shows to general entertainment programs, such as music, celebrity, news, debate, interviews, and personality-based shows. The company was founded in 1983 and is based in Miami, Florida.
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.
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