Critical Contrast: Liberty Broadband Corp Series C (LBRDK) & Roku (ROKU)

Liberty Broadband Corp Series C (NASDAQ: LBRDK) and Roku (NASDAQ:ROKU) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Insider and Institutional Ownership

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54.6% of Liberty Broadband Corp Series C shares are held by institutional investors. Comparatively, 16.2% of Roku shares are held by institutional investors. 10.8% of Liberty Broadband Corp Series C shares are held by company insiders. Comparatively, 0.6% of Roku shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Liberty Broadband Corp Series C and Roku, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Broadband Corp Series C 0 1 0 0 2.00
Roku 2 6 3 0 2.09

Liberty Broadband Corp Series C presently has a consensus price target of $95.00, indicating a potential upside of 34.50%. Roku has a consensus price target of $36.50, indicating a potential upside of 5.07%. Given Liberty Broadband Corp Series C’s higher possible upside, equities analysts plainly believe Liberty Broadband Corp Series C is more favorable than Roku.

Profitability

This table compares Liberty Broadband Corp Series C and Roku’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Broadband Corp Series C 9,349.79% 21.43% 18.92%
Roku N/A N/A N/A

Valuation and Earnings

This table compares Liberty Broadband Corp Series C and Roku’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Broadband Corp Series C $13.09 million 978.46 $2.03 billion N/A N/A
Roku $512.76 million 6.75 -$63.50 million ($2.24) -15.51

Liberty Broadband Corp Series C has higher earnings, but lower revenue than Roku.

Summary

Liberty Broadband Corp Series C beats Roku on 8 of the 11 factors compared between the two stocks.

Liberty Broadband Corp Series C Company Profile

Liberty Broadband Corporation, a cable operator, provides video, Internet, and voice services to residential and commercial customers in the United States. It operates through Skyhook and Charter segments. The Skyhook segment offers Precision Location Solution, a location determination service for mobile device makers, wireless carriers, and asset tracking platforms to understanding the precise geographic location and movement of mobile devices; enhancing the location determination capabilities of a hybrid location system. It also provides Geospatial Insights, a location intelligence and data insights service for enterprises, research and consulting firms, financial institutions, and advertisers to understand, measure, and optimize the performance of businesses; benchmark performance against competitors; enhance customer experience; advertise to, and target existing and prospective customers; and measure the efficacy of advertising campaigns in driving real-world actions. The Charter segment offers subscription-based video services comprising video on demand, high definition television, and digital video recorder service; and local and long distance calling, voicemail, call waiting, caller ID, call forwarding, and other voice services, as well as international calling services. It also provides Internet services, which comprises an in-home Wi-Fi product that provides customers with high performance wireless routers; out-of-home Wi-Fi service for Internet customers at designated hot spots; and a security suite that offers protection against computer viruses and spyware. In addition, this segment offers Internet access, data networking, video entertainment, and business telephone services; fiber connectivity to cellular towers and office buildings; and advertising services on cable television networks and digital outlets, as well as regional sports and news networks distribution, and security and home management services. The company is based in Englewood, Colorado.

Roku Company Profile

Roku, Inc. operates a TV streaming platform. The company operates in two segments, Player and Platform. Its platform allows users to search, discover, and access approximately 500,000 movies and TV episodes, as well as live sports, music, news, and others. As of December 31, 2017, the company had 19.3 million active accounts. It also provides advertising products, including videos ads, interactive video ads, audience development promotions, and brand sponsorships; and manufactures, sells, and licenses TVs under the Roku TV name. In addition, the company offers streaming media players and accessories under the Roku brand that allow users to access its TV streaming platform; and sells branded channel buttons on remote controls. It provides its products and services through retailers and distributors, as well as directly to customers through its Website in the United States, Canada, the United Kingdom, France, the Republic of Ireland, and various Latin American countries. The company was founded in 2002 and is headquartered in Los Gatos, California.