Comprehensive Stock Comparison
Compare Roku, Inc. (ROKU) vs Starz Entertainment Corp. (STRZ) 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 STRZ's -1.6% |
| Quality / Margins | ROKU | 1.9% net margin vs STRZ's -5.4% |
| Stability / Safety | STRZ | Beta 1.07 vs ROKU's 1.81 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | ROKU | +7.8% vs STRZ's -17.1% |
| Efficiency (ROA) | ROKU | 2.0% ROA vs STRZ's -7.1%, ROIC -0.3% vs 0.4% |
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.
Starz Entertainment is a premium subscription video service offering original series and movies to viewers in the United States and Canada. It generates revenue primarily through monthly subscription fees — both direct-to-consumer via its app and through partnerships with cable/satellite providers and streaming platforms. Its competitive advantage lies in its established brand recognition for premium content and exclusive licensing deals for popular film libraries.
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, Profitability & Efficiency). STRZ leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
ROKU is the larger business by revenue, generating $4.7B annually — 1.8x STRZ's $2.6B. ROKU is the more profitable business, keeping 1.9% of every revenue dollar as net income compared to STRZ's -5.4%. On growth, ROKU holds the edge at +16.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ROKURoku, Inc. | STRZStarz Entertainme… |
|---|---|---|
| RevenueTrailing 12 months | $4.7B | $2.6B |
| EBITDAEarnings before interest/tax | $188M | $1.5B |
| Net IncomeAfter-tax profit | $88M | -$140M |
| Free Cash FlowCash after capex | $594M | -$157M |
| Gross MarginGross profit ÷ Revenue | +43.8% | +44.8% |
| Operating MarginEBIT ÷ Revenue | -0.1% | +4.5% |
| Net MarginNet income ÷ Revenue | +1.9% | -5.4% |
| FCF MarginFCF ÷ Revenue | +12.5% | -6.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +16.1% | -7.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.2% | -72.1% |
Valuation Metrics
On an enterprise value basis, STRZ's 1.5x EV/EBITDA is more attractive than ROKU's 2.5x.
| Metric | ROKURoku, Inc. | STRZStarz Entertainme… |
|---|---|---|
| Market CapShares × price | $1.5B | $155M |
| Enterprise ValueMkt cap + debt − cash | $833M | $1.2B |
| Trailing P/EPrice ÷ TTM EPS | 156.41x | -0.73x |
| Forward P/EPrice ÷ next-FY EPS est. | 43.37x | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 2.49x | 1.49x |
| Price / SalesMarket cap ÷ Revenue | 0.33x | 0.11x |
| Price / BookPrice ÷ Book value/share | 5.24x | 0.20x |
| Price / FCFMarket cap ÷ FCF | 3.24x | — |
Profitability & Efficiency
ROKU delivers a 3.3% return on equity — every $100 of shareholder capital generates $3 in annual profit, vs $-21 for STRZ. ROKU carries lower financial leverage with a 0.33x debt-to-equity ratio, signaling a more conservative balance sheet compared to STRZ's 1.42x. On the Piotroski fundamental quality scale (0–9), ROKU scores 6/9 vs STRZ's 4/9, reflecting solid financial health.
| Metric | ROKURoku, Inc. | STRZStarz Entertainme… |
|---|---|---|
| ROE (TTM)Return on equity | +3.3% | -21.0% |
| ROA (TTM)Return on assets | +2.0% | -7.1% |
| ROICReturn on invested capital | -0.3% | +0.4% |
| ROCEReturn on capital employed | -0.2% | +0.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 0.33x | 1.42x |
| Net DebtTotal debt minus cash | -$715M | $1.1B |
| Cash & Equiv.Liquid assets | $1.6B | $18M |
| Total DebtShort + long-term debt | $872M | $1.1B |
| Interest CoverageEBIT ÷ Interest expense | 36.47x | 0.28x |
Total Returns (with DRIP)
A $10,000 investment in STRZ five years ago would be worth $8,286 today (with dividends reinvested), compared to $2,333 for ROKU. Over the past 12 months, ROKU leads with a +7.8% total return vs STRZ's -17.1%. The 3-year compound annual growth rate (CAGR) favors ROKU at 14.0% vs STRZ's -6.1% — a key indicator of consistent wealth creation.
| Metric | ROKURoku, Inc. | STRZStarz Entertainme… |
|---|---|---|
| YTD ReturnYear-to-date | -15.1% | -20.1% |
| 1-Year ReturnPast 12 months | +7.8% | -17.1% |
| 3-Year ReturnCumulative with dividends | +48.0% | -17.1% |
| 5-Year ReturnCumulative with dividends | -76.7% | -17.1% |
| 10-Year ReturnCumulative with dividends | +292.7% | -17.1% |
| CAGR (3Y)Annualised 3-year return | +14.0% | -6.1% |
Risk & Volatility
STRZ is the less volatile stock with a 1.07 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 STRZ's 40.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ROKURoku, Inc. | STRZStarz Entertainme… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.81x | 1.07x |
| 52-Week HighHighest price in past year | $116.66 | $22.98 |
| 52-Week LowLowest price in past year | $52.43 | $8.00 |
| % of 52W HighCurrent price vs 52-week peak | +79.1% | +40.4% |
| RSI (14)Momentum oscillator 0–100 | 41.2 | 45.0 |
| Avg Volume (50D)Average daily shares traded | 3.1M | 105K |
Analyst Outlook
Wall Street rates ROKU as "Buy" and STRZ as "Hold". Consensus price targets imply 40.1% upside for STRZ (target: $13) vs 39.9% for ROKU (target: $129).
| Metric | ROKURoku, Inc. | STRZStarz Entertainme… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $129.08 | $13.00 |
| # AnalystsCovering analysts | 45 | 3 |
| 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 1Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Roku, Inc. (ROKU) | $399M | $4.7B | +1088.3% |
| Starz Entertainment… (STRZ) | $2.3B | $1.4B | -41.7% |
Roku, Inc.'s revenue grew from $399M (2016) to $4.7B (2025) — a 31.7% CAGR. Starz Entertainment Corp.'s revenue grew from $2.3B (2016) to $1.4B (2025) — a -5.8% CAGR.
Chart 2Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Roku, Inc. (ROKU) | -10.7% | 1.9% | +117.4% |
| Starz Entertainment… (STRZ) | 2.1% | -15.4% | -821.1% |
Roku, Inc.'s net margin went from -11% (2016) to 2% (2025). Starz Entertainment Corp.'s net margin went from 2% (2016) to -15% (2025).
Chart 3EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Roku, Inc. (ROKU) | -0.5 | 0.59 | +218.0% |
| Starz Entertainment… (STRZ) | 13.2 | -12.64 | -195.8% |
Roku, Inc.'s EPS grew from $-0.50 (2016) to $0.59 (2025). Starz Entertainment Corp.'s EPS grew from $13.20 (2016) to $-12.64 (2025) — a NaN% CAGR.
Chart 4Free Cash Flow — 5 Years
Roku, Inc. generated $478M FCF in 2025 (+154% vs 2021). Starz Entertainment Corp. generated $-64M FCF in 2025 (-316% vs 2021).
ROKU vs STRZ: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is ROKU or STRZ a better buy right now?
Roku, Inc. (ROKU) offers the better valuation at 156.4x trailing P/E (43.4x 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 STRZ?
Over the past 5 years, Starz Entertainment Corp. (STRZ) delivered a total return of -17.1%, compared to -76.7% for Roku, Inc. (ROKU). A $10,000 investment in STRZ five years ago would be worth approximately $8K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ROKU returned +292.7% versus STRZ's -17.1%. 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 STRZ?
By beta (market sensitivity over 5 years), Starz Entertainment Corp. (STRZ) is the lower-risk stock at 1.07β versus Roku, Inc.'s 1.81β — meaning ROKU is approximately 69% more volatile than STRZ relative to the S&P 500. On balance sheet safety, Roku, Inc. (ROKU) carries a lower debt/equity ratio of 33% versus 142% for Starz Entertainment Corp. — giving it more financial flexibility in a downturn.
04Which has better profit margins — ROKU or STRZ?
Roku, Inc. (ROKU) is the more profitable company, earning 1.9% net margin versus -15.4% for Starz Entertainment Corp. — meaning it keeps 1.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: STRZ leads at 0.9% 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.
05Is ROKU or STRZ more undervalued right now?
Analyst consensus price targets imply the most upside for STRZ: 40.1% to $13.00.
06Which pays a better dividend — ROKU or STRZ?
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 STRZ better for a retirement portfolio?
For long-horizon retirement investors, Starz Entertainment Corp. (STRZ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.07)). 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 (STRZ: -17.1%, 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.
08What are the main differences between ROKU and STRZ?
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%