Critical Survey: Roku (NASDAQ:ROKU) and Vivendi (OTCMKTS:VIVEF)

Roku (NASDAQ:ROKU) and Vivendi (OTCMKTS:VIVEF) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

86.3% of Roku shares are owned by institutional investors. Comparatively, 29.2% of Vivendi shares are owned by institutional investors. 13.4% of Roku shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roku	$4.74 billion	4.95	$88.36 million	$2.34	67.47
Vivendi	N/A	N/A	N/A	$2.45	0.80

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roku	0	19	7	1	2.33
Vivendi	0	0	0	0	0.00

Roku presently has a consensus price target of $156.17, indicating a potential downside of 1.08%. Given Roku’s stronger consensus rating and higher possible upside, research analysts plainly believe Roku is more favorable than Vivendi.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roku	6.82%	13.73%	8.34%
Vivendi	N/A	N/A	N/A

Summary

Roku beats Vivendi on 11 of the 12 factors compared between the two stocks.

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.

About Vivendi

Vivendi SE operates as an entertainment, media, and communication company in France, the rest of Europe, the Americas, Asia/Oceania, and Africa. It operates through Canal+ Group, Lagardère, Havas, Prisma Media, Gameloft, Vivendi Village, New Initiatives, and Generosity and Solidarity segments. The Canal+ Group segment publishes and distributes premium and thematic pay-TV and free-to-air channels; and produces, sells, and distributes movies and TV series. The Lagardère segment engages in the publishing, media, and travel retail activities. The Havas segment includes communications disciplines, such as creativity, media expertise, and healthcare/wellness. The Prisma Media segment publishes French magazines and online videos. The Gameloft segment engages in the creation and publishing of downloadable video games for various console-PC-mobile platforms, tablets, triple-play boxes, and smart TVs. The Vivendi Village segment provides ticketing services and live performances through Olympia production, festival production, and venues. The New Initiatives segment operates Dailymotion, a video content aggregation and distribution platform, as well as develops ultra-high-speed Internet service. The Generosity and Solidarity segment operates CanalOlympia; and Vivendi Foundation, a Create Joy solidarity program, which supports initial and professional training projects. The company was founded in 1853 and is headquartered in Paris, France.