Financial Comparison: Gray Media (NYSE:GTN) & Roku (NASDAQ:ROKU)

Gray Media (NYSE:GTN) and Roku (NASDAQ:ROKU) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gray Media	-2.75%	-2.51%	-0.53%
Roku	1.87%	3.40%	2.04%

Insider & Institutional Ownership

78.6% of Gray Media shares are held by institutional investors. Comparatively, 86.3% of Roku shares are held by institutional investors. 15.2% of Gray Media shares are held by insiders. Comparatively, 14.0% of Roku shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Gray Media and Roku”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gray Media	$3.10 billion	0.16	-$85.00 million	($1.42)	-3.31
Roku	$4.74 billion	3.06	$88.36 million	$0.57	172.60

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

Volatility and Risk

Gray Media has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Roku has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Gray Media and Roku, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gray Media	1	2	3	0	2.33
Roku	0	4	22	1	2.89

Gray Media presently has a consensus price target of $8.13, indicating a potential upside of 73.06%. Roku has a consensus price target of $126.48, indicating a potential upside of 28.56%. Given Gray Media’s higher possible upside, research analysts plainly believe Gray Media is more favorable than Roku.

Summary

Roku beats Gray Media on 13 of the 15 factors compared between the two stocks.

About Gray Media

Gray Television, Inc., a television broadcasting company, owns and/or operates television stations and digital assets in the United States. It also broadcasts secondary digital channels affiliated to ABC, CBS, NBC, and FOX, as well as various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, Circle, Telemundo, THE365, and Outlaw; and local news/weather channels in various markets. It owns and operates television stations and digital assets that serve television markets in the United States. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia.

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.