WallStSmart

Roku Inc (ROKU)vsWarner Bros Discovery Inc (WBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 593% more annual revenue ($36.12B vs $5.21B). ROKU leads profitability with a 6.8% profit margin vs -8.8%. ROKU appears more attractively valued with a PEG of 0.61. ROKU earns a higher WallStSmart Score of 63/100 (C+).

ROKU

Buy

63

out of 100

Grade: C+

Growth: 8.7Profit: 5.5Value: 5.0Quality: 8.0
Piotroski: 4/9Altman Z: 2.15

WBD

Hold

36

out of 100

Grade: F

Growth: 2.7Profit: 3.5Value: 5.7Quality: 4.0
Piotroski: 4/9Altman Z: 0.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ROKU.

WBDUndervalued (+56.0%)

Margin of Safety

+56.0%

Fair Value

$63.56

Current Price

$28.04

$35.52 discount

UndervaluedFair: $63.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ROKU4 strengths · Avg: 8.8/10
EPS GrowthGrowth
1443.0%10/10

Earnings expanding 1443.0% YoY

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.618/10

Growing faster than its price suggests

Revenue GrowthGrowth
21.9%8/10

Revenue surging 21.9% year-over-year

WBD2 strengths · Avg: 8.5/10
Market CapQuality
$70.70B9/10

Large-cap with strong market position

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

ROKU3 concerns · Avg: 3.0/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Profit MarginProfitability
6.8%3/10

6.8% margin — thin

P/E RatioValuation
65.8x2/10

Premium valuation, high expectations priced in

WBD4 concerns · Avg: 2.0/10
PEG RatioValuation
55.182/10

Expensive relative to growth rate

Return on EquityProfitability
-9.6%2/10

ROE of -9.6% — below average capital efficiency

Revenue GrowthGrowth
-11.2%2/10

Revenue declined 11.2%

EPS GrowthGrowth
-90.6%2/10

Earnings declined 90.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : ROKU

The strongest argument for ROKU centers on EPS Growth, Debt/Equity, PEG Ratio. Revenue growth of 21.9% demonstrates continued momentum. PEG of 0.61 suggests the stock is reasonably priced for its growth.

Bull Case : WBD

The strongest argument for WBD centers on Market Cap, Price/Book.

Bear Case : ROKU

The primary concerns for ROKU are Price/Book, Profit Margin, P/E Ratio. A P/E of 65.8x leaves little room for execution misses.

Bear Case : WBD

The primary concerns for WBD are PEG Ratio, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

ROKU profiles as a growth stock while WBD is a turnaround play — different risk/reward profiles.

ROKU carries more volatility with a beta of 2.05 — expect wider price swings.

ROKU is growing revenue faster at 21.9% — sustainability is the question.

WBD generates stronger free cash flow (572M), providing more financial flexibility.

Bottom Line

ROKU scores higher overall (63/100 vs 36/100) and 21.9% revenue growth. WBD offers better value entry with a 56.0% margin of safety. 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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Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Bros. The company is headquartered in New York, New York.

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