Comprehensive Stock Comparison
Compare Netflix, Inc. (NFLX) vs Roku, Inc. (ROKU) 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 | NFLX | 15.9% revenue growth vs ROKU's 15.2% |
| Value | NFLX | Lower P/E (26.4x vs 43.4x) |
| Quality / Margins | NFLX | 24.3% net margin vs ROKU's 1.9% |
| Stability / Safety | NFLX | Beta 0.78 vs ROKU's 1.81 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | ROKU | +7.8% vs NFLX's -16.5% |
| Efficiency (ROA) | NFLX | 19.8% ROA vs ROKU's 2.0%, ROIC 29.8% vs -0.3% |
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
Netflix is a global streaming entertainment service that offers original and licensed TV shows, movies, and documentaries. It generates revenue primarily through subscription fees — with three pricing tiers — and earns additional income from licensing its original content to other platforms. Its key advantage is its massive scale and data-driven content creation, which allows it to invest billions in programming that attracts and retains subscribers worldwide.
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.
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
NFLX leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). ROKU leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
NFLX is the larger business by revenue, generating $45.2B annually — 9.5x ROKU's $4.7B. NFLX is the more profitable business, keeping 24.3% of every revenue dollar as net income compared to ROKU's 1.9%.
| Metric | NFLXNetflix, Inc. | ROKURoku, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $45.2B | $4.7B |
| EBITDAEarnings before interest/tax | $30.1B | $188M |
| Net IncomeAfter-tax profit | $11.0B | $88M |
| Free Cash FlowCash after capex | $9.5B | $594M |
| Gross MarginGross profit ÷ Revenue | +48.5% | +43.8% |
| Operating MarginEBIT ÷ Revenue | +29.5% | -0.1% |
| Net MarginNet income ÷ Revenue | +24.3% | +1.9% |
| FCF MarginFCF ÷ Revenue | +20.9% | +12.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +17.6% | +16.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +31.1% | +3.2% |
Valuation Metrics
At 32.7x trailing earnings, NFLX trades at a 79% valuation discount to ROKU's 156.4x P/E. On an enterprise value basis, ROKU's 2.5x EV/EBITDA is more attractive than NFLX's 11.8x.
| Metric | NFLXNetflix, Inc. | ROKURoku, Inc. |
|---|---|---|
| Market CapShares × price | $350.4B | $1.5B |
| Enterprise ValueMkt cap + debt − cash | $355.9B | $833M |
| Trailing P/EPrice ÷ TTM EPS | 32.69x | 156.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 26.43x | 43.37x |
| PEG RatioP/E ÷ EPS growth rate | 0.99x | — |
| EV / EBITDAEnterprise value multiple | 11.83x | 2.49x |
| Price / SalesMarket cap ÷ Revenue | 7.76x | 0.33x |
| Price / BookPrice ÷ Book value/share | 13.41x | 5.24x |
| Price / FCFMarket cap ÷ FCF | 37.04x | 3.24x |
Profitability & Efficiency
NFLX delivers a 41.3% return on equity — every $100 of shareholder capital generates $41 in annual profit, vs $3 for ROKU. ROKU carries lower financial leverage with a 0.33x debt-to-equity ratio, signaling a more conservative balance sheet compared to NFLX's 0.54x. On the Piotroski fundamental quality scale (0–9), NFLX scores 7/9 vs ROKU's 6/9, reflecting strong financial health.
| Metric | NFLXNetflix, Inc. | ROKURoku, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +41.3% | +3.3% |
| ROA (TTM)Return on assets | +19.8% | +2.0% |
| ROICReturn on invested capital | +29.8% | -0.3% |
| ROCEReturn on capital employed | +30.5% | -0.2% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.54x | 0.33x |
| Net DebtTotal debt minus cash | $5.4B | -$715M |
| Cash & Equiv.Liquid assets | $9.0B | $1.6B |
| Total DebtShort + long-term debt | $14.5B | $872M |
| Interest CoverageEBIT ÷ Interest expense | 17.33x | 36.47x |
Total Returns (with DRIP)
A $10,000 investment in NFLX five years ago would be worth $15,346 today (with dividends reinvested), compared to $2,333 for ROKU. Over the past 12 months, ROKU leads with a +7.8% total return vs NFLX's -16.5%. The 3-year compound annual growth rate (CAGR) favors NFLX at 36.8% vs ROKU's 14.0% — a key indicator of consistent wealth creation.
| Metric | NFLXNetflix, Inc. | ROKURoku, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -9.1% | -15.1% |
| 1-Year ReturnPast 12 months | -16.5% | +7.8% |
| 3-Year ReturnCumulative with dividends | +156.0% | +48.0% |
| 5-Year ReturnCumulative with dividends | +53.5% | -76.7% |
| 10-Year ReturnCumulative with dividends | +772.4% | +292.7% |
| CAGR (3Y)Annualised 3-year return | +36.8% | +14.0% |
Risk & Volatility
NFLX is the less volatile stock with a 0.78 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. ROKU currently trades 79.1% from its 52-week high vs NFLX's 61.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NFLXNetflix, Inc. | ROKURoku, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.78x | 1.81x |
| 52-Week HighHighest price in past year | $134.12 | $116.66 |
| 52-Week LowLowest price in past year | $75.01 | $52.43 |
| % of 52W HighCurrent price vs 52-week peak | +61.7% | +79.1% |
| RSI (14)Momentum oscillator 0–100 | 40.6 | 41.2 |
| Avg Volume (50D)Average daily shares traded | 41.3M | 3.1M |
Analyst Outlook
Wall Street rates NFLX as "Buy" and ROKU as "Buy". Consensus price targets imply 41.8% upside for NFLX (target: $117) vs 39.9% for ROKU (target: $129).
| Metric | NFLXNetflix, Inc. | ROKURoku, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $117.25 | $129.08 |
| # AnalystsCovering analysts | 97 | 45 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +2.6% | +9.7% |
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 |
|---|---|---|---|
| Netflix, Inc. (NFLX) | 100 | 218.25 | +118.2% |
| Roku, Inc. (ROKU) | 100 | 85.33 | -14.7% |
Netflix, Inc. (NFLX) returned +53% over 5 years vs Roku, Inc. (ROKU)'s -77%. A $10,000 investment in NFLX 5 years ago would be worth $15,346 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Netflix, Inc. (NFLX) | $8.8B | $45.2B | +411.7% |
| Roku, Inc. (ROKU) | $399M | $4.7B | +1088.3% |
Netflix, Inc.'s revenue grew from $8.8B (2016) to $45.2B (2025) — a 19.9% CAGR. 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 |
|---|---|---|---|
| Netflix, Inc. (NFLX) | 2.1% | 24.3% | +1049.7% |
| Roku, Inc. (ROKU) | -10.7% | 1.9% | +117.4% |
Netflix, Inc.'s net margin went from 2% (2016) to 24% (2025). Roku, Inc.'s net margin went from -11% (2016) to 2% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Netflix, Inc. (NFLX) | 153.6 | 37.1 | -75.8% |
Netflix, Inc. has traded in a 30x–154x P/E range over 9 years; current trailing P/E is ~33x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Netflix, Inc. (NFLX) | 0.04 | 2.53 | +5783.7% |
| Roku, Inc. (ROKU) | -0.5 | 0.59 | +218.0% |
Netflix, Inc.'s EPS grew from $0.04 (2016) to $2.53 (2025) — a 57% CAGR. Roku, Inc.'s EPS grew from $-0.50 (2016) to $0.59 (2025).
Chart 6Free Cash Flow — 5 Years
Netflix, Inc. generated $9B FCF in 2025 (+7269% vs 2021). Roku, Inc. generated $478M FCF in 2025 (+154% vs 2021).
NFLX vs ROKU: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NFLX or ROKU a better buy right now?
Netflix, Inc. (NFLX) offers the better valuation at 32.7x trailing P/E (26.4x forward), making it the more compelling value choice. Analysts rate Netflix, Inc. (NFLX) a "Buy" — based on 97 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 has the better valuation — NFLX or ROKU?
On trailing P/E, Netflix, Inc. (NFLX) is the cheapest at 32.7x versus Roku, Inc. at 156.4x. On forward P/E, Netflix, Inc. is actually cheaper at 26.4x.
03Which is the better long-term investment — NFLX or ROKU?
Over the past 5 years, Netflix, Inc. (NFLX) delivered a total return of +53.5%, compared to -76.7% for Roku, Inc. (ROKU). A $10,000 investment in NFLX five years ago would be worth approximately $15K today (assuming dividends reinvested). Over 10 years, the gap is even starker: NFLX returned +772.4% versus ROKU's +292.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — NFLX or ROKU?
By beta (market sensitivity over 5 years), Netflix, Inc. (NFLX) is the lower-risk stock at 0.78β versus Roku, Inc.'s 1.81β — meaning ROKU is approximately 134% more volatile than NFLX relative to the S&P 500. On balance sheet safety, Roku, Inc. (ROKU) carries a lower debt/equity ratio of 33% versus 54% for Netflix, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — NFLX or ROKU?
Netflix, Inc. (NFLX) is the more profitable company, earning 24.3% net margin versus 1.9% for Roku, Inc. — meaning it keeps 24.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NFLX leads at 29.5% versus -0.1% for ROKU. At the gross margin level — before operating expenses — NFLX leads at 48.5%, 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.
06Is NFLX or ROKU more undervalued right now?
On forward earnings alone, Netflix, Inc. (NFLX) trades at 26.4x forward P/E versus 43.4x for Roku, Inc. — 16.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NFLX: 41.8% to $117.25.
07Which pays a better dividend — NFLX or ROKU?
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.
08Is NFLX or ROKU better for a retirement portfolio?
For long-horizon retirement investors, Netflix, Inc. (NFLX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.78), +772.4% 10Y return). Roku, Inc. (ROKU) carries a higher beta of 1.81 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (NFLX: +772.4%, ROKU: +292.7%), 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.
09What are the main differences between NFLX and ROKU?
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%