Comprehensive Stock Comparison
Compare Roku, Inc. (ROKU) vs Warner Bros. Discovery, Inc. (WBD) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | ROKU | 15.2% revenue growth vs WBD's -4.8% |
| Value | ROKU | Better valuation composite |
| Quality / Margins | ROKU | 1.9% net margin vs WBD's 1.3% |
| Stability / Safety | WBD | Beta 1.73 vs ROKU's 1.81 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | WBD | +145.8% vs ROKU's +17.8% |
| Efficiency (ROA) | ROKU | 2.0% ROA vs WBD's 0.5%, ROIC -0.3% vs -9.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Roku operates a leading TV streaming platform that connects viewers with content through its operating system and streaming devices. It makes money primarily through digital advertising on its platform (roughly 85% of revenue) and selling streaming hardware players and licensed TVs (about 15%). Its key advantage is its massive installed base of active accounts and its neutral platform position—unlike competitors tied to specific content ecosystems—which creates a powerful advertising network and distribution channel.
Warner Bros. Discovery is a global media and entertainment conglomerate that produces and distributes content across film, television, and streaming platforms. It generates revenue primarily through three segments: Studios (film and TV production), Networks (cable and broadcast channels), and Direct-to-Consumer (streaming services like Max and discovery+). The company's key advantage is its massive content library and iconic franchises — including DC, Harry Potter, HBO originals, and Discovery's unscripted programming — which create a deep moat in an increasingly competitive streaming landscape.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ROKU leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). WBD leads in 2 (Total Returns, Risk & Volatility).
Financial Metrics (TTM)
WBD is the larger business by revenue, generating $37.9B annually — 8.0x ROKU's $4.7B. Profitability is closely matched — net margins range from 1.9% (ROKU) to 1.3% (WBD). On growth, ROKU holds the edge at +16.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ROKURoku, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| RevenueTrailing 12 months | $4.7B | $37.9B |
| EBITDAEarnings before interest/tax | $188M | $16.4B |
| Net IncomeAfter-tax profit | $88M | $485M |
| Free Cash FlowCash after capex | $594M | $4.1B |
| Gross MarginGross profit ÷ Revenue | +43.8% | +44.0% |
| Operating MarginEBIT ÷ Revenue | -0.1% | +1.5% |
| Net MarginNet income ÷ Revenue | +1.9% | +1.3% |
| FCF MarginFCF ÷ Revenue | +12.5% | +10.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +16.1% | -6.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.2% | -2.1% |
Valuation Metrics
On an enterprise value basis, ROKU's 2.8x EV/EBITDA is more attractive than WBD's 10.1x.
| Metric | ROKURoku, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| Market CapShares × price | $1.7B | $76.3B |
| Enterprise ValueMkt cap + debt − cash | $936M | $110.5B |
| Trailing P/EPrice ÷ TTM EPS | 166.80x | -6.10x |
| Forward P/EPrice ÷ next-FY EPS est. | 46.25x | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 2.80x | 10.09x |
| Price / SalesMarket cap ÷ Revenue | 0.35x | 1.94x |
| Price / BookPrice ÷ Book value/share | 5.59x | 1.98x |
| Price / FCFMarket cap ÷ FCF | 3.45x | 17.23x |
Profitability & Efficiency
ROKU delivers a 3.3% return on equity — every $100 of shareholder capital generates $3 in annual profit, vs $1 for WBD. ROKU carries lower financial leverage with a 0.33x debt-to-equity ratio, signaling a more conservative balance sheet compared to WBD's 1.13x. On the Piotroski fundamental quality scale (0–9), ROKU scores 6/9 vs WBD's 4/9, reflecting solid financial health.
| Metric | ROKURoku, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| ROE (TTM)Return on equity | +3.3% | +1.3% |
| ROA (TTM)Return on assets | +2.0% | +0.5% |
| ROICReturn on invested capital | -0.3% | -9.7% |
| ROCEReturn on capital employed | -0.2% | -10.2% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 0.33x | 1.13x |
| Net DebtTotal debt minus cash | -$715M | $34.2B |
| Cash & Equiv.Liquid assets | $1.6B | $5.3B |
| Total DebtShort + long-term debt | $872M | $39.5B |
| Interest CoverageEBIT ÷ Interest expense | 36.47x | 1.85x |
Total Returns (with DRIP)
A $10,000 investment in WBD five years ago would be worth $4,842 today (with dividends reinvested), compared to $2,341 for ROKU. Over the past 12 months, WBD leads with a +145.8% total return vs ROKU's +17.8%. The 3-year compound annual growth rate (CAGR) favors WBD at 21.7% vs ROKU's 15.0% — a key indicator of consistent wealth creation.
| Metric | ROKURoku, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| YTD ReturnYear-to-date | -9.5% | -1.2% |
| 1-Year ReturnPast 12 months | +17.8% | +145.8% |
| 3-Year ReturnCumulative with dividends | +52.1% | +80.3% |
| 5-Year ReturnCumulative with dividends | -76.6% | -51.6% |
| 10-Year ReturnCumulative with dividends | +318.8% | +12.7% |
| CAGR (3Y)Annualised 3-year return | +15.0% | +21.7% |
Risk & Volatility
WBD is the less volatile stock with a 1.73 beta — it tends to amplify market swings less than ROKU's 1.81 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. WBD currently trades 93.9% from its 52-week high vs ROKU's 84.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ROKURoku, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.81x | 1.73x |
| 52-Week HighHighest price in past year | $116.66 | $30.00 |
| 52-Week LowLowest price in past year | $52.43 | $7.52 |
| % of 52W HighCurrent price vs 52-week peak | +84.4% | +93.9% |
| RSI (14)Momentum oscillator 0–100 | 50.0 | 58.5 |
| Avg Volume (50D)Average daily shares traded | 3.0M | 20.9M |
Analyst Outlook
Wall Street rates ROKU as "Buy" and WBD as "Hold". Consensus price targets imply 31.2% upside for ROKU (target: $129) vs -9.2% for WBD (target: $26).
| Metric | ROKURoku, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $129.08 | $25.59 |
| # AnalystsCovering analysts | 45 | 31 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | 1 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +9.1% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Roku, Inc. (ROKU) | 100 | 84.61 | -15.4% |
| Warner Bros. Discov… (WBD) | 100 | 107.08 | +7.1% |
Warner Bros. Discov… (WBD) returned -52% over 5 years vs Roku, Inc. (ROKU)'s -77%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Roku, Inc. (ROKU) | $399M | $4.7B | +1088.3% |
| Warner Bros. Discov… (WBD) | $6.5B | $39.3B | +505.2% |
Roku, Inc.'s revenue grew from $399M (2016) to $4.7B (2025) — a 31.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Roku, Inc. (ROKU) | -10.7% | 1.9% | +117.4% |
| Warner Bros. Discov… (WBD) | 18.4% | -28.8% | -256.5% |
Roku, Inc.'s net margin went from -11% (2016) to 2% (2025).
Chart 4P/E Ratio History — 4 Years
| Stock | 2018 | 2021 | Change |
|---|---|---|---|
| Warner Bros. Discov… (WBD) | 28.8 | 15.3 | -46.9% |
Warner Bros. Discovery, Inc. has traded in a 11x–29x P/E range over 4 years; current trailing P/E is ~-6x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Roku, Inc. (ROKU) | -0.5 | 0.59 | +218.0% |
| Warner Bros. Discov… (WBD) | 1.96 | -4.62 | -335.7% |
Roku, Inc.'s EPS grew from $-0.50 (2016) to $0.59 (2025).
Chart 6Free Cash Flow — 5 Years
Roku, Inc. generated $478M FCF in 2025 (+154% vs 2021). Warner Bros. Discovery, Inc. generated $4B FCF in 2024 (+83% vs 2021).
ROKU vs WBD: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is ROKU or WBD a better buy right now?
Roku, Inc. (ROKU) offers the better valuation at 166.8x trailing P/E (46.3x forward), making it the more compelling value choice. Analysts rate Roku, Inc. (ROKU) a "Buy" — based on 45 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — ROKU or WBD?
Over the past 5 years, Warner Bros. Discovery, Inc. (WBD) delivered a total return of -51.6%, compared to -76.6% for Roku, Inc. (ROKU). A $10,000 investment in WBD five years ago would be worth approximately $5K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ROKU returned +318.8% versus WBD's +12.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — ROKU or WBD?
By beta (market sensitivity over 5 years), Warner Bros. Discovery, Inc. (WBD) is the lower-risk stock at 1.73β versus Roku, Inc.'s 1.81β — meaning ROKU is approximately 5% more volatile than WBD relative to the S&P 500. On balance sheet safety, Roku, Inc. (ROKU) carries a lower debt/equity ratio of 33% versus 113% for Warner Bros. Discovery, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — ROKU or WBD?
Roku, Inc. (ROKU) is the more profitable company, earning 1.9% net margin versus -28.8% for Warner Bros. Discovery, Inc. — meaning it keeps 1.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ROKU leads at -0.1% versus -25.5% for WBD. At the gross margin level — before operating expenses — ROKU leads at 43.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Is ROKU or WBD more undervalued right now?
Analyst consensus price targets imply the most upside for ROKU: 31.2% to $129.08.
06Which pays a better dividend — ROKU or WBD?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
07Is ROKU or WBD better for a retirement portfolio?
For long-horizon retirement investors, Roku, Inc. (ROKU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+318.8% 10Y return). Warner Bros. Discovery, Inc. (WBD) carries a higher beta of 1.73 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ROKU: +318.8%, WBD: +12.7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
08What are the main differences between ROKU and WBD?
Both stocks operate in the Communication Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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- Sector: Communication Services
- Market Cap > $100B
- Revenue Growth > 8%
- Gross Margin > 26%