WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 649% more annual revenue ($37.21B vs $4.97B). ROKU leads profitability with a 4.1% profit margin vs -4.7%. ROKU appears more attractively valued with a PEG of 1.04. WBD earns a higher WallStSmart Score of 46/100 (D+).

ROKU

Hold

44

out of 100

Grade: D

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

WBD

Hold

46

out of 100

Grade: D+

Growth: 5.3Profit: 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 (+58.0%)

Margin of Safety

+58.0%

Fair Value

$66.65

Current Price

$26.24

$40.41 discount

UndervaluedFair: $66.65Overvalued

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

WBD3 strengths · Avg: 9.0/10
EPS GrowthGrowth
226.7%10/10

Earnings expanding 226.7% YoY

Market CapQuality
$67.98B9/10

Large-cap with strong market position

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

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

WBD4 concerns · Avg: 2.0/10
PEG RatioValuation
216.922/10

Expensive relative to growth rate

Return on EquityProfitability
-5.3%2/10

ROE of -5.3% — below average capital efficiency

Revenue GrowthGrowth
-1.0%2/10

Revenue declined 1.0%

Free Cash FlowQuality
$-476.00M2/10

Negative free cash flow — burning cash

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 : WBD

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

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 : 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 2.03 — expect wider price swings.

ROKU is growing revenue faster at 22.4% — sustainability is the question.

ROKU generates stronger free cash flow (196M), providing more financial flexibility.

Bottom Line

WBD scores higher overall (46/100 vs 44/100). Both earn "Hold" 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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