WallStSmart

Roku Inc (ROKU)vsTKO Group Holdings, Inc. (TKO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TKO Group Holdings, Inc. generates 2% more annual revenue ($5.06B vs $4.97B). TKO leads profitability with a 4.5% profit margin vs 4.1%. ROKU appears more attractively valued with a PEG of 1.04. TKO earns a higher WallStSmart Score of 63/100 (C+).

ROKU

Hold

44

out of 100

Grade: D

Growth: 6.0Profit: 4.0Value: 4.3Quality: 8.0
Piotroski: 4/9Altman Z: 2.08

TKO

Buy

63

out of 100

Grade: C+

Growth: 9.3Profit: 5.5Value: 4.3Quality: 4.0
Piotroski: 3/9Altman Z: 1.33

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ROKU2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
22.4%8/10

Revenue surging 22.4% year-over-year

TKO3 strengths · Avg: 8.7/10
EPS GrowthGrowth
63.0%10/10

Earnings expanding 63.0% YoY

Operating MarginProfitability
21.2%8/10

Strong operational efficiency at 21.2%

Revenue GrowthGrowth
25.9%8/10

Revenue surging 25.9% year-over-year

Areas to Watch

ROKU4 concerns · Avg: 2.8/10
Return on EquityProfitability
7.5%3/10

ROE of 7.5% — below average capital efficiency

Profit MarginProfitability
4.1%3/10

4.1% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

P/E RatioValuation
106.4x2/10

Premium valuation, high expectations priced in

TKO4 concerns · Avg: 3.0/10
Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Profit MarginProfitability
4.5%3/10

4.5% margin — thin

Debt/EquityHealth
1.473/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ROKU

The strongest argument for ROKU centers on Debt/Equity, Revenue Growth. Revenue growth of 22.4% demonstrates continued momentum. PEG of 1.04 suggests the stock is reasonably priced for its growth.

Bull Case : TKO

The strongest argument for TKO centers on EPS Growth, Operating Margin, Revenue Growth. Revenue growth of 25.9% demonstrates continued momentum. PEG of 1.43 suggests the stock is reasonably priced for its growth.

Bear Case : ROKU

The primary concerns for ROKU are Return on Equity, Profit Margin, Operating Margin. A P/E of 106.4x leaves little room for execution misses. Thin 4.1% margins leave little buffer for downturns.

Bear Case : TKO

The primary concerns for TKO are Return on Equity, Profit Margin, Debt/Equity. A P/E of 75.7x leaves little room for execution misses. Thin 4.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

ROKU carries more volatility with a beta of 2.03 — expect wider price swings.

TKO is growing revenue faster at 25.9% — sustainability is the question.

TKO generates stronger free cash flow (675M), providing more financial flexibility.

Monitor ENTERTAINMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TKO scores higher overall (63/100 vs 44/100) and 25.9% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Roku Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Roku, Inc. operates a TV streaming platform. The company is headquartered in San Jose, California.

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TKO Group Holdings, Inc.

COMMUNICATION SERVICES · ENTERTAINMENT · USA

TKO Group Holdings, Inc. is a sports and entertainment company. The company is headquartered in New York, New York.

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