Comprehensive Stock Comparison
Compare Roku, Inc. (ROKU) vs iQIYI, Inc. (IQ) 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 IQ's -8.3% |
| Value | IQ | Lower P/E (2.5x vs 43.4x) |
| Quality / Margins | ROKU | 1.9% net margin vs IQ's -1.4% |
| Stability / Safety | IQ | Beta 1.31 vs ROKU's 1.81 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | ROKU | +7.8% vs IQ's -16.1% |
| Efficiency (ROA) | ROKU | 2.0% ROA vs IQ's -0.9%, ROIC -0.3% vs 5.8% |
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.
iQIYI is a leading Chinese online entertainment platform that provides streaming video content including dramas, movies, variety shows, and animations. It generates revenue primarily through membership subscriptions (around 60% of revenue) and online advertising (roughly 25%), with additional income from content distribution and other services. The company's competitive advantage lies in its massive proprietary content library — particularly its popular original productions — and its deep integration within the broader Baidu ecosystem.
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 — strongest in Financial Metrics and Profitability & Efficiency. 2 categories are tied.
Financial Metrics (TTM)
IQ is the larger business by revenue, generating $27.1B annually — 5.7x ROKU's $4.7B. Profitability is closely matched — net margins range from 1.9% (ROKU) to -1.4% (IQ). On growth, ROKU holds the edge at +16.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ROKURoku, Inc. | IQiQIYI, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $4.7B | $27.1B |
| EBITDAEarnings before interest/tax | $188M | $6.3B |
| Net IncomeAfter-tax profit | $88M | -$390M |
| Free Cash FlowCash after capex | $594M | $466M |
| Gross MarginGross profit ÷ Revenue | +43.8% | +21.9% |
| Operating MarginEBIT ÷ Revenue | -0.1% | +1.7% |
| Net MarginNet income ÷ Revenue | +1.9% | -1.4% |
| FCF MarginFCF ÷ Revenue | +12.5% | +1.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +16.1% | -7.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.2% | -2.1% |
Valuation Metrics
At 15.7x trailing earnings, IQ trades at a 90% valuation discount to ROKU's 156.4x P/E. On an enterprise value basis, ROKU's 2.5x EV/EBITDA is more attractive than IQ's 26.1x.
| Metric | ROKURoku, Inc. | IQiQIYI, Inc. |
|---|---|---|
| Market CapShares × price | $1.5B | $5.4B |
| Enterprise ValueMkt cap + debt − cash | $833M | $6.9B |
| Trailing P/EPrice ÷ TTM EPS | 156.41x | 15.72x |
| Forward P/EPrice ÷ next-FY EPS est. | 43.37x | 2.46x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 2.49x | 26.13x |
| Price / SalesMarket cap ÷ Revenue | 0.33x | 1.26x |
| Price / BookPrice ÷ Book value/share | 5.24x | 0.88x |
| Price / FCFMarket cap ÷ FCF | 3.24x | 19.01x |
Profitability & Efficiency
ROKU delivers a 3.3% return on equity — every $100 of shareholder capital generates $3 in annual profit, vs $-3 for IQ. ROKU carries lower financial leverage with a 0.33x debt-to-equity ratio, signaling a more conservative balance sheet compared to IQ's 1.06x. On the Piotroski fundamental quality scale (0–9), ROKU scores 6/9 vs IQ's 5/9, reflecting solid financial health.
| Metric | ROKURoku, Inc. | IQiQIYI, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +3.3% | -2.9% |
| ROA (TTM)Return on assets | +2.0% | -0.9% |
| ROICReturn on invested capital | -0.3% | +5.8% |
| ROCEReturn on capital employed | -0.2% | +7.8% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.33x | 1.06x |
| Net DebtTotal debt minus cash | -$715M | $10.7B |
| Cash & Equiv.Liquid assets | $1.6B | $3.5B |
| Total DebtShort + long-term debt | $872M | $14.2B |
| Interest CoverageEBIT ÷ Interest expense | 36.47x | 0.77x |
Total Returns (with DRIP)
A $10,000 investment in ROKU five years ago would be worth $2,333 today (with dividends reinvested), compared to $699 for IQ. Over the past 12 months, ROKU leads with a +7.8% total return vs IQ's -16.1%. The 3-year compound annual growth rate (CAGR) favors ROKU at 14.0% vs IQ's -38.7% — a key indicator of consistent wealth creation.
| Metric | ROKURoku, Inc. | IQiQIYI, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -15.1% | -12.8% |
| 1-Year ReturnPast 12 months | +7.8% | -16.1% |
| 3-Year ReturnCumulative with dividends | +48.0% | -77.0% |
| 5-Year ReturnCumulative with dividends | -76.7% | -93.0% |
| 10-Year ReturnCumulative with dividends | +292.7% | -88.6% |
| CAGR (3Y)Annualised 3-year return | +14.0% | -38.7% |
Risk & Volatility
IQ is the less volatile stock with a 1.31 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 IQ's 62.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ROKURoku, Inc. | IQiQIYI, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.81x | 1.31x |
| 52-Week HighHighest price in past year | $116.66 | $2.84 |
| 52-Week LowLowest price in past year | $52.43 | $1.50 |
| % of 52W HighCurrent price vs 52-week peak | +79.1% | +62.3% |
| RSI (14)Momentum oscillator 0–100 | 41.2 | 36.5 |
| Avg Volume (50D)Average daily shares traded | 3.1M | 7.9M |
Analyst Outlook
Wall Street rates ROKU as "Buy" and IQ as "Buy". Consensus price targets imply 39.9% upside for ROKU (target: $129) vs 18.6% for IQ (target: $2).
| Metric | ROKURoku, Inc. | IQiQIYI, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $129.08 | $2.10 |
| # AnalystsCovering analysts | 45 | 22 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | 1 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +9.7% | 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 | 85.33 | -14.7% |
| iQIYI, Inc. (IQ) | 100 | 8.2 | -91.8% |
Roku, Inc. (ROKU) returned -77% over 5 years vs iQIYI, Inc. (IQ)'s -93%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Roku, Inc. (ROKU) | $399M | $4.7B | +1088.3% |
| iQIYI, Inc. (IQ) | $11.2B | $29.2B | +160.1% |
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% |
| iQIYI, Inc. (IQ) | -27.4% | 2.6% | +109.6% |
Roku, Inc.'s net margin went from -11% (2016) to 2% (2025).
Chart 4EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Roku, Inc. (ROKU) | -0.5 | 0.59 | +218.0% |
| iQIYI, Inc. (IQ) | -11.45 | 0.77 | +106.7% |
Roku, Inc.'s EPS grew from $-0.50 (2016) to $0.59 (2025).
Chart 5Free Cash Flow — 5 Years
Roku, Inc. generated $478M FCF in 2025 (+154% vs 2021). iQIYI, Inc. generated $2B FCF in 2024 (+130% vs 2021).
ROKU vs IQ: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ROKU or IQ a better buy right now?
iQIYI, Inc. (IQ) offers the better valuation at 15.7x trailing P/E (2.5x 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 has the better valuation — ROKU or IQ?
On trailing P/E, iQIYI, Inc. (IQ) is the cheapest at 15.7x versus Roku, Inc. at 156.4x. On forward P/E, iQIYI, Inc. is actually cheaper at 2.5x.
03Which is the better long-term investment — ROKU or IQ?
Over the past 5 years, Roku, Inc. (ROKU) delivered a total return of -76.7%, compared to -93.0% for iQIYI, Inc. (IQ). A $10,000 investment in ROKU five years ago would be worth approximately $2K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ROKU returned +292.7% versus IQ's -88.6%. 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 — ROKU or IQ?
By beta (market sensitivity over 5 years), iQIYI, Inc. (IQ) is the lower-risk stock at 1.31β versus Roku, Inc.'s 1.81β — meaning ROKU is approximately 38% more volatile than IQ relative to the S&P 500. On balance sheet safety, Roku, Inc. (ROKU) carries a lower debt/equity ratio of 33% versus 106% for iQIYI, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — ROKU or IQ?
iQIYI, Inc. (IQ) is the more profitable company, earning 2.6% net margin versus 1.9% for Roku, Inc. — meaning it keeps 2.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: IQ leads at 6.2% versus -0.1% for ROKU. 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.
06Is ROKU or IQ more undervalued right now?
On forward earnings alone, iQIYI, Inc. (IQ) trades at 2.5x forward P/E versus 43.4x for Roku, Inc. — 40.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ROKU: 39.9% to $129.08.
07Which pays a better dividend — ROKU or IQ?
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 ROKU or IQ better for a retirement portfolio?
For long-horizon retirement investors, iQIYI, Inc. (IQ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. 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 (IQ: -88.6%, 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 ROKU and IQ?
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. In terms of investment character: ROKU is a small-cap quality compounder stock; IQ is a small-cap deep-value stock. 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%