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ROKU vs WMG

ROKU
Roku, Inc.
NEUTRAL
Price
$94.62
Market Cap
$13.95B
Sector
Communication Services
AI Confidence
85%
WMG
Warner Music Group Corp.
NEUTRAL
Price
$28.99
Market Cap
$15.14B
Sector
Communication Services
AI Confidence
85%

Valuation

P/E Ratio
ROKU
160.37
WMG
50.86
Forward P/E
ROKU
29.43
WMG
16.4
P/B Ratio
ROKU
5.26
WMG
20.99
P/S Ratio
ROKU
2.94
WMG
2.2
EV/EBITDA
ROKU
43.7
WMG
12.9

Profitability

Gross Margin
ROKU
43.79%
WMG
45.87%
Operating Margin
ROKU
4.54%
WMG
17.77%
Profit Margin
ROKU
1.86%
WMG
4.43%
ROE
ROKU
3.43%
WMG
39.84%
ROA
ROKU
-0.0%
WMG
7.12%

Growth

Revenue Growth
ROKU
16.1%
WMG
10.4%
Earnings Growth
ROKU
--
WMG
-25.9%

Financial Health

Debt/Equity
ROKU
0.2
WMG
5.56
Current Ratio
ROKU
2.75
WMG
0.7
Quick Ratio
ROKU
2.58
WMG
0.49

Dividends

Dividend Yield
ROKU
--
WMG
2.62%
Payout Ratio
ROKU
0.0%
WMG
129.82%

AI Verdict

ROKU NEUTRAL

ROKU shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 7/9). Mixed signals with both opportunities and risks present.

Strengths
Strong financial trend (Piotroski F-Score: 7/9)
Strong revenue growth of 16.1%
Low debt with D/E ratio of 0.20
Risks
High valuation with P/E of 160.4
Premium vs Graham Number ($15.45)
Low profit margin of 1.9%
WMG NEUTRAL

WMG exhibits a significant divergence between its fundamental value and market pricing. With a Piotroski F-Score of 4/9 (Stable) and a Graham Number of $4.21, the stock is trading at a massive premium to its defensive fair value. While strong ROE and a low PEG ratio suggest growth potential, the company's financial health is strained by a high Debt/Equity ratio of 5.56 and an unsustainable dividend payout ratio of 129.82%.

Strengths
Strong Return on Equity (ROE) of 39.84%
Positive revenue growth of 10.40% YoY
Attractive PEG ratio of 0.77, suggesting growth is undervalued relative to price
Risks
Extreme leverage with a Debt/Equity ratio of 5.56
Liquidity risk indicated by a Current Ratio of 0.70
Unsustainable dividend payout ratio of 129.82%

Compare Another Pair

ROKU vs WMG: Head-to-Head Comparison

This page compares Roku, Inc. (ROKU) and Warner Music Group Corp. (WMG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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