Roku vs Netflix

This page offers a detailed comparison of Roku, Inc. and Netflix, Inc. It examines their respective business models, evaluates their financial performance, and analyses their positions within the broader market context. Understanding these elements is crucial for investors seeking to differentiate between the two companies. Educational content, not financial advice.

This page offers a detailed comparison of Roku, Inc. and Netflix, Inc. It examines their respective business models, evaluates their financial performance, and analyses their positions within the broa...

Comparison Snapshot

Key Financial Metrics

ROKU

Metric

NFLX

$15.81B

Market Cap

$361.84B

15.19%

Potential Profit

51.46%

Buy

Analyst Rating

Buy

Why It's Moving

Netflix Stock Dips on Weak Q1 Guidance Despite Earnings Beat and Warner Bros. Deal Momentum

Q4 results showed EPS of $0.56 beating $0.55 estimates and revenue at $12.05B above forecasts, with subscribers hitting 325 million globally.
Q1 guidance underwhelmed at $0.76 EPS vs. $0.81 expected and $12.16B revenue vs. $12.19B, overshadowing positives like full-year 2026 revenue outlook of $50.7-$51.7B.
Warner Bros. deal shifted to all-cash $82.7B structure, sparking a brief 1.6% bounce, but regulatory hurdles and competition weigh on sentiment amid a 30% six-month plunge.

Sentiment:

🐻Bearish

Netflix Stock Dips on Weak Q1 Guidance Despite Earnings Beat and Warner Bros. Deal Momentum

Q4 results showed EPS of $0.56 beating $0.55 estimates and revenue at $12.05B above forecasts, with subscribers hitting 325 million globally.
Q1 guidance underwhelmed at $0.76 EPS vs. $0.81 expected and $12.16B revenue vs. $12.19B, overshadowing positives like full-year 2026 revenue outlook of $50.7-$51.7B.
Warner Bros. deal shifted to all-cash $82.7B structure, sparking a brief 1.6% bounce, but regulatory hurdles and competition weigh on sentiment amid a 30% six-month plunge.

Sentiment:

🐻Bearish

Investment Analysis

Roku

ROKU

Pros

Analysts project 265.6% year-over-year EPS growth for Roku in 2026.
Roku benefits from platform strength driving recent 12.6% stock gains.
Lower content spending supports advertising-focused model versus content-heavy rivals.

Considerations

Roku exhibits higher volatility at 9.12-13.87% compared to Netflix's 6.20-6.42%.
Stock trades in 40-50% percentile of historical levels, indicating elevated risk.
Year-to-date return of 18.46% trails Netflix's 44.69% performance.

Netflix

NFLX

Pros

2026 revenues expected to reach $50.99 billion, implying 13.08% growth.
Analysts forecast 26.93% EPS increase for 2026 with upward revisions.
Broad 2026 original series launches target diverse audience segments for subscriber growth.

Considerations

Intense competition from Amazon and Roku pressures streaming hours and retention.
Elevated content spending and debt obligations strain operating margins.
Trades at forward price-to-sales ratio of 7.83X, exceeding industry average of 4.3X.

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