Roblox (NYSE:RBLX – Get Free Report) is one of 185 public companies in the “Entertainment” industry, but how does it contrast to its competitors? We will compare Roblox to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, earnings, valuation and risk.
Profitability
This table compares Roblox and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Roblox | -16.48% | -417.56% | -9.47% |
| Roblox Competitors | 10.16% | -30.94% | -2.61% |
Volatility and Risk
Roblox has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Roblox’s competitors have a beta of 1.00, indicating that their average stock price is 0% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Roblox and its competitors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roblox | 5 | 13 | 10 | 2 | 2.30 |
| Roblox Competitors | 1902 | 4563 | 9692 | 257 | 2.51 |
Roblox currently has a consensus price target of $53.04, indicating a potential upside of 6.23%. As a group, “Entertainment” companies have a potential upside of 14.72%. Given Roblox’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Roblox has less favorable growth aspects than its competitors.
Earnings and Valuation
This table compares Roblox and its competitors gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Roblox | $4.89 billion | -$1.07 billion | -36.18 |
| Roblox Competitors | $9.94 billion | $67.95 million | 3.14 |
Roblox’s competitors have higher revenue and earnings than Roblox. Roblox is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Insider and Institutional Ownership
94.5% of Roblox shares are held by institutional investors. Comparatively, 36.0% of shares of all “Entertainment” companies are held by institutional investors. 10.1% of Roblox shares are held by insiders. Comparatively, 24.5% of shares of all “Entertainment” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Roblox competitors beat Roblox on 10 of the 13 factors compared.
About Roblox
Roblox Corporation operates an online platform where users can create, share and play interactive 3D experiences. The company provides Roblox Studio, a set of tools that creators use to build games and other virtual spaces, as well as services for users to connect and communicate within those experiences. Roblox supports a creator economy through Robux, its virtual currency, which users can use for digital items and purchases in experiences. Eligible creators can earn revenue from their work through purchases and other platform programs.
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