Comprehensive Stock Comparison
Compare Starz Entertainment Corp. (STRZ) 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 | 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
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.
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
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 | STRZStarz Entertainme… | ROKURoku, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $2.6B | $4.7B |
| EBITDAEarnings before interest/tax | $1.5B | $188M |
| Net IncomeAfter-tax profit | -$140M | $88M |
| Free Cash FlowCash after capex | -$157M | $594M |
| Gross MarginGross profit ÷ Revenue | +44.8% | +43.8% |
| Operating MarginEBIT ÷ Revenue | +4.5% | -0.1% |
| Net MarginNet income ÷ Revenue | -5.4% | +1.9% |
| FCF MarginFCF ÷ Revenue | -6.1% | +12.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | -7.5% | +16.1% |
| EPS Growth (YoY)Latest quarter vs prior year | -72.1% | +3.2% |
Valuation Metrics
On an enterprise value basis, STRZ's 1.5x EV/EBITDA is more attractive than ROKU's 2.5x.
| Metric | STRZStarz Entertainme… | ROKURoku, Inc. |
|---|---|---|
| Market CapShares × price | $155M | $1.5B |
| Enterprise ValueMkt cap + debt − cash | $1.2B | $833M |
| Trailing P/EPrice ÷ TTM EPS | -0.73x | 156.41x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 43.37x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 1.49x | 2.49x |
| Price / SalesMarket cap ÷ Revenue | 0.11x | 0.33x |
| Price / BookPrice ÷ Book value/share | 0.20x | 5.24x |
| 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 | STRZStarz Entertainme… | ROKURoku, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -21.0% | +3.3% |
| ROA (TTM)Return on assets | -7.1% | +2.0% |
| ROICReturn on invested capital | +0.4% | -0.3% |
| ROCEReturn on capital employed | +0.5% | -0.2% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 6 |
| Debt / EquityFinancial leverage | 1.42x | 0.33x |
| Net DebtTotal debt minus cash | $1.1B | -$715M |
| Cash & Equiv.Liquid assets | $18M | $1.6B |
| Total DebtShort + long-term debt | $1.1B | $872M |
| Interest CoverageEBIT ÷ Interest expense | 0.28x | 36.47x |
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 | STRZStarz Entertainme… | ROKURoku, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -20.1% | -15.1% |
| 1-Year ReturnPast 12 months | -17.1% | +7.8% |
| 3-Year ReturnCumulative with dividends | -17.1% | +48.0% |
| 5-Year ReturnCumulative with dividends | -17.1% | -76.7% |
| 10-Year ReturnCumulative with dividends | -17.1% | +292.7% |
| CAGR (3Y)Annualised 3-year return | -6.1% | +14.0% |
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 | STRZStarz Entertainme… | ROKURoku, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.07x | 1.81x |
| 52-Week HighHighest price in past year | $22.98 | $116.66 |
| 52-Week LowLowest price in past year | $8.00 | $52.43 |
| % of 52W HighCurrent price vs 52-week peak | +40.4% | +79.1% |
| RSI (14)Momentum oscillator 0–100 | 45.0 | 41.2 |
| Avg Volume (50D)Average daily shares traded | 105K | 3.1M |
Analyst Outlook
Wall Street rates STRZ as "Hold" and ROKU as "Buy". Consensus price targets imply 40.1% upside for STRZ (target: $13) vs 39.9% for ROKU (target: $129).
| Metric | STRZStarz Entertainme… | ROKURoku, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $13.00 | $129.08 |
| # AnalystsCovering analysts | 3 | 45 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +9.7% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Starz Entertainment… (STRZ) | $2.3B | $1.4B | -41.7% |
| Roku, Inc. (ROKU) | $399M | $4.7B | +1088.3% |
Starz Entertainment Corp.'s revenue grew from $2.3B (2016) to $1.4B (2025) — a -5.8% CAGR. Roku, Inc.'s revenue grew from $399M (2016) to $4.7B (2025) — a 31.7% CAGR.
Chart 2Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Starz Entertainment… (STRZ) | 2.1% | -15.4% | -821.1% |
| Roku, Inc. (ROKU) | -10.7% | 1.9% | +117.4% |
Starz Entertainment Corp.'s net margin went from 2% (2016) to -15% (2025). Roku, Inc.'s net margin went from -11% (2016) to 2% (2025).
Chart 3EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Starz Entertainment… (STRZ) | 13.2 | -12.64 | -195.8% |
| Roku, Inc. (ROKU) | -0.5 | 0.59 | +218.0% |
Starz Entertainment Corp.'s EPS grew from $13.20 (2016) to $-12.64 (2025) — a NaN% CAGR. Roku, Inc.'s EPS grew from $-0.50 (2016) to $0.59 (2025).
Chart 4Free Cash Flow — 5 Years
Starz Entertainment Corp. generated $-64M FCF in 2025 (-316% vs 2021). Roku, Inc. generated $478M FCF in 2025 (+154% vs 2021).
STRZ vs ROKU: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is STRZ or ROKU 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 — STRZ or ROKU?
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 — STRZ or ROKU?
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 — STRZ or ROKU?
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 STRZ or ROKU more undervalued right now?
Analyst consensus price targets imply the most upside for STRZ: 40.1% to $13.00.
06Which pays a better dividend — STRZ 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.
07Is STRZ or ROKU 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 STRZ 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%