Financial Survey: Roblox (NYSE:RBLX) and Netflix (NASDAQ:NFLX)

Roblox (NYSE:RBLX) and Netflix (NASDAQ:NFLX) are both large-cap communication services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Roblox and Netflix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roblox	3	15	12	1	2.35
Netflix	1	16	34	4	2.75

Roblox currently has a consensus price target of $60.89, suggesting a potential upside of 40.92%. Netflix has a consensus price target of $96.65, suggesting a potential upside of 23.52%. Given Roblox’s higher possible upside, equities research analysts plainly believe Roblox is more favorable than Netflix.

Insider and Institutional Ownership

94.5% of Roblox shares are owned by institutional investors. Comparatively, 80.9% of Netflix shares are owned by institutional investors. 10.1% of Roblox shares are owned by insiders. Comparatively, 1.2% of Netflix shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Roblox and Netflix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roblox	-17.60%	-292.85%	-10.13%
Netflix	28.22%	40.02%	19.81%

Risk & Volatility

Roblox has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Netflix has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Valuation & Earnings

This table compares Roblox and Netflix”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roblox	$4.89 billion	5.92	-$1.07 billion	($1.43)	-30.22
Netflix	$45.18 billion	7.21	$10.98 billion	$3.18	24.61

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

Summary

Netflix beats Roblox on 12 of the 15 factors compared between the two stocks.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.

About Netflix

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.