Roku (NASDAQ:ROKU) and SoOum (OTCMKTS:SOUM) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Roku and SoOum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Roku -1.47% -4.60% -2.51%
SoOum N/A N/A N/A

Institutional & Insider Ownership

50.5% of Roku shares are held by institutional investors. 22.7% of Roku shares are held by company insiders. Comparatively, 71.4% of SoOum shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Roku and SoOum, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roku 2 6 9 0 2.41
SoOum 0 0 0 0 N/A

Roku presently has a consensus target price of $79.86, suggesting a potential downside of 21.72%. Given Roku’s higher probable upside, research analysts clearly believe Roku is more favorable than SoOum.

Valuation & Earnings

This table compares Roku and SoOum’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Roku $742.51 million 15.58 -$8.86 million ($0.08) -1,275.25
SoOum $630,000.00 0.01 -$340,000.00 N/A N/A

SoOum has lower revenue, but higher earnings than Roku.

Volatility and Risk

Roku has a beta of 2.43, indicating that its stock price is 143% more volatile than the S&P 500. Comparatively, SoOum has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500.

Summary

Roku beats SoOum on 6 of the 11 factors compared between the two stocks.

Roku Company Profile

Roku, Inc. operates a TV streaming platform. The company operates in two segments, Platform and Player. Its platform allows users to discover and access various movies and TV episodes, as well as live sports, music, news, and others. As of December 31, 2018, the company had 27.1 million active accounts. It also provides advertising products, including videos ads, brand sponsorships, and audience marketplace program; 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 name; 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, Mexico, and various Latin American countries. The company was founded in 2002 and is headquartered in Los Gatos, California.

SoOum Company Profile

SoOum, Corp. operates as a commodity trading arbitrage firm in the United States. The company operates through two segments, Arbitrage and Construction Services. It performs arbitrage on a defined supply and demand conditions creating price discrepancies of physical commodities in opposing markets. The company trades in soft commodities, such as rice, wheat, sugar, soybeans, meats, live cattle, seafood, live seafood, and other soft commodities; and hard commodities, including iron ore, crude oil, coal, salt, aluminum, copper, gold, silver, palladium and platinum, cement, fly ash, precious metals, and other such hard commodities. It also develops applications for mobile and TV smart devices. The company was formerly known as Swordfish Financial, Inc. and changed its name to SoOum, Corp. in October 2015. SoOum, Corp.is based in New York, New York.

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