Live Nation Entertainment (NYSE: LYV) and Roku (NASDAQ:ROKU) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
Earnings and Valuation
This table compares Live Nation Entertainment and Roku’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Live Nation Entertainment||$8.35 billion||1.08||-$47.01 million||$0.02||2,180.59|
|Roku||$398.64 million||10.43||-$42.75 million||($0.71)||-59.89|
Roku has lower revenue, but higher earnings than Live Nation Entertainment. Roku is trading at a lower price-to-earnings ratio than Live Nation Entertainment, indicating that it is currently the more affordable of the two stocks.
This table compares Live Nation Entertainment and Roku’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Live Nation Entertainment||0.50%||3.33%||0.63%|
Insider and Institutional Ownership
68.1% of Live Nation Entertainment shares are owned by institutional investors. Comparatively, 23.3% of Roku 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of current ratings and target prices for Live Nation Entertainment and Roku, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Live Nation Entertainment||0||2||8||0||2.80|
Live Nation Entertainment currently has a consensus price target of $42.00, suggesting a potential downside of 3.65%. Roku has a consensus price target of $31.00, suggesting a potential downside of 27.09%. Given Live Nation Entertainment’s stronger consensus rating and higher possible upside, equities analysts clearly believe Live Nation Entertainment is more favorable than Roku.
Live Nation Entertainment beats Roku on 10 of the 12 factors compared between the two stocks.
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.
Roku, Inc. operates television streaming platform. The Company connects users to streaming content, enables content publishers to build and monetize audiences and provides advertisers with capabilities to engage consumers. Its Roku platform allows users to personalize their content selection with cable television replacement offerings and other streaming services that suit their budget and needs. Ad-supported channels available on the Roku platform include CBS News, Crackle, The CW Television Network and Vice; subscription channels include HBO Now, Hulu and Netflix, as well as traditional pay TV replacement services like DirecTV Now, Sling TV and Sony PlayStation Vue; and transactional channels include Amazon Video, Google Play and Vudu. Its product categories include advertising, Roku TVs and Streaming Players.
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