Roblox (NYSE:RBLX – Get Free Report) and Netflix (NASDAQ:NFLX – Get Free Report) are both large-cap communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.
Analyst Ratings
This is a breakdown of current ratings for Roblox and Netflix, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roblox | 3 | 14 | 13 | 1 | 2.39 |
| Netflix | 1 | 16 | 34 | 4 | 2.75 |
Roblox presently has a consensus price target of $59.21, suggesting a potential upside of 29.82%. Netflix has a consensus price target of $96.65, suggesting a potential upside of 24.87%. Given Roblox’s higher probable upside, equities research analysts plainly believe Roblox is more favorable than Netflix.
Risk and Volatility
Profitability
This table compares Roblox and Netflix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Roblox | -17.60% | -292.85% | -10.13% |
| Netflix | 28.22% | 40.02% | 19.81% |
Insider and Institutional Ownership
94.5% of Roblox shares are held by institutional investors. Comparatively, 80.9% of Netflix shares are held by institutional investors. 10.1% of Roblox shares are held by insiders. Comparatively, 1.2% of Netflix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Roblox and Netflix”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Roblox | $5.69 billion | 5.37 | -$1.07 billion | ($1.43) | -31.90 |
| Netflix | $48.37 billion | 6.66 | $10.98 billion | $3.18 | 24.34 |
Netflix has higher revenue and earnings than Roblox. Roblox is trading at a lower price-to-earnings ratio than Netflix, indicating that it is currently the more affordable of the two stocks.
Summary
Netflix beats Roblox on 12 of the 15 factors compared between the two stocks.
About Roblox
Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.
About Netflix
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.
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