Financial Survey: Clear Secure (NYSE:YOU) versus Roblox (NYSE:RBLX)

Roblox (NYSE:RBLX) and Clear Secure (NYSE:YOU) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Volatility & Risk

Roblox has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Clear Secure has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Valuation and Earnings

This table compares Roblox and Clear Secure”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roblox	$2.80 billion	14.51	-$1.15 billion	($1.64)	-40.76
Clear Secure	$613.58 million	5.47	$28.11 million	$0.86	27.97

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

Profitability

This table compares Roblox and Clear Secure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roblox	-30.90%	-986.36%	-16.20%
Clear Secure	10.93%	48.28%	12.96%

Institutional and Insider Ownership

94.5% of Roblox shares are held by institutional investors. Comparatively, 73.8% of Clear Secure shares are held by institutional investors. 22.2% of Roblox shares are held by insiders. Comparatively, 37.9% of Clear Secure shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Roblox and Clear Secure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roblox	0	7	16	1	2.75
Clear Secure	0	2	3	0	2.60

Roblox presently has a consensus target price of $57.48, indicating a potential downside of 14.03%. Clear Secure has a consensus target price of $35.20, indicating a potential upside of 46.33%. Given Clear Secure’s higher possible upside, analysts clearly believe Clear Secure is more favorable than Roblox.

Summary

Clear Secure beats Roblox on 8 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 Clear Secure

Clear Secure, Inc. operates a secure identity platform under the CLEAR brand name primarily in the United States. Its secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking, as well as back-end. The company also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR mobile app, which is used to enroll new members and improve the experience for existing members. In addition, it provides RESERVE powered by CLEAR, a virtual queuing technology that provides users with the ability to book a dedicated time slot to go through security at the airport; CLEAR Verified, a B2B offering that extends secure identity platform to partners to create friction-free experiences for their customers; TSA PreCheck Enrollment Provided by CLEAR, as well as online renewal services; Atlas Certified, an automated solution to verify professional licenses and certification data across industries; and Sora ID that enables adding know your customer services to platform offerings, as well as virtual queuing technology that enables customers to manage lines. The company was founded in 2010 and is headquartered in New York, New York. Clear Secure, Inc. is a subsidiary of Alclear Investments, Llc.