Analyzing Radio One (NASDAQ:UONEK) and Roku (NASDAQ:ROKU)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radio One	0	0	0	0	0.00
Roku	1	6	18	2	2.78

Roku has a consensus price target of $100.67, indicating a potential upside of 2.37%. Given Roku’s stronger consensus rating and higher probable upside, analysts clearly believe Roku is more favorable than Radio One.

Volatility and Risk

Radio One has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Roku has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500.

Valuation and Earnings

This table compares Radio One and Roku”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radio One	$449.67 million	0.08	-$105.39 million	($3.46)	-0.23
Roku	$4.11 billion	3.52	-$129.39 million	($0.42)	-234.14

Radio One has higher earnings, but lower revenue than Roku. Roku is trading at a lower price-to-earnings ratio than Radio One, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Radio One	-38.19%	13.04%	2.28%
Roku	-1.40%	-2.44%	-1.44%

Institutional & Insider Ownership

19.7% of Radio One shares are owned by institutional investors. Comparatively, 86.3% of Roku shares are owned by institutional investors. 50.5% of Radio One shares are owned by company insiders. Comparatively, 14.0% of Roku shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Roku beats Radio One on 10 of the 15 factors compared between the two stocks.

About Radio One

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of April 30, 2023, it owned and/or operated 66 broadcast stations, including 55 FM or AM stations, 9 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities. The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.

About Roku

Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls. The Devices segment provides sale of streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories as well as licensing arrangements with service operators. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.