Roku Inc (ROKU)vsWarner Bros Discovery Inc (WBD)
ROKU
Roku Inc
$95.06
-0.55%
COMMUNICATION SERVICES · Cap: $14.09B
WBD
Warner Bros Discovery Inc
$27.22
-0.22%
COMMUNICATION SERVICES · Cap: $67.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Warner Bros Discovery Inc generates 687% more annual revenue ($37.30B vs $4.74B). WBD leads profitability with a 1.9% profit margin vs 1.9%. ROKU appears more attractively valued with a PEG of 0.86. WBD earns a higher WallStSmart Score of 51/100 (C-).
ROKU
Hold44
out of 100
Grade: D
WBD
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-2091.8%
Fair Value
$4.01
Current Price
$95.06
$91.05 premium
Margin of Safety
-106.3%
Fair Value
$13.57
Current Price
$27.22
$13.65 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
16.1% revenue growth
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B in free cash flow
Areas to Watch
ROE of 3.4% — below average capital efficiency
1.9% margin — thin
Operating margin of 4.5%
Premium valuation, high expectations priced in
2.3% earnings growth
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ROKU
The strongest argument for ROKU centers on PEG Ratio, Revenue Growth. Revenue growth of 16.1% demonstrates continued momentum. PEG of 0.86 suggests the stock is reasonably priced for its growth.
Bull Case : WBD
The strongest argument for WBD centers on Market Cap, Price/Book, Free Cash Flow.
Bear Case : ROKU
The primary concerns for ROKU are Return on Equity, Profit Margin, Operating Margin. A P/E of 162.0x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Bear Case : WBD
The primary concerns for WBD are EPS Growth, Return on Equity, Profit Margin. A P/E of 94.1x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
ROKU profiles as a growth stock while WBD is a value play — different risk/reward profiles.
ROKU carries more volatility with a beta of 2.04 — expect wider price swings.
ROKU is growing revenue faster at 16.1% — sustainability is the question.
WBD generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
WBD scores higher overall (51/100 vs 44/100). 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.
Visit Website →Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
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