Financial Review: Roblox (RBLX) versus Its Rivals

Roblox (NYSE:RBLX) is one of 185 publicly-traded companies in the “Entertainment” industry, but how does it weigh in compared to its peers? We will compare Roblox to similar companies based on the strength of its earnings, profitability, dividends, analyst recommendations, risk, institutional ownership and valuation.

Insider & Institutional Ownership

94.5% of Roblox shares are owned by institutional investors. Comparatively, 36.0% of shares of all “Entertainment” companies are owned by institutional investors. 10.1% of Roblox shares are owned by company insiders. Comparatively, 24.5% of shares of all “Entertainment” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Roblox and its peers’ 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%

Analyst Ratings

This is a summary of current ratings and recommmendations for Roblox and its peers, 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 target price 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 peers stronger consensus rating and higher possible upside, analysts clearly believe Roblox has less favorable growth aspects than its peers.

Risk & Volatility

Roblox has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Roblox’s peers have a beta of 1.00, indicating that their average stock price is 0% more volatile than the S&P 500.

Valuation & Earnings

This table compares Roblox and its peers revenue, earnings per share (EPS) 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 peers have higher revenue and earnings than Roblox. Roblox is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Roblox peers 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.