Simplicity Esports and Gaming (OTCMKTS:WINR) vs. DraftKings (NASDAQ:DKNG) Head-To-Head Comparison

Simplicity Esports and Gaming (OTCMKTS:WINR) and DraftKings (NASDAQ:DKNG) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Insider & Institutional Ownership

37.7% of DraftKings shares are held by institutional investors. 15.4% of Simplicity Esports and Gaming shares are held by company insiders. Comparatively, 51.2% of DraftKings shares are held by company 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 Ratings

This is a breakdown of recent ratings and price targets for Simplicity Esports and Gaming and DraftKings, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simplicity Esports and Gaming	0	0	0	0	0.00
DraftKings	4	2	26	0	2.69

DraftKings has a consensus price target of $51.83, suggesting a potential upside of 70.49%. Given DraftKings’ stronger consensus rating and higher possible upside, analysts plainly believe DraftKings is more favorable than Simplicity Esports and Gaming.

Profitability

This table compares Simplicity Esports and Gaming and DraftKings’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simplicity Esports and Gaming	N/A	N/A	N/A
DraftKings	-4.90%	-21.47%	-4.68%

Valuation and Earnings

This table compares Simplicity Esports and Gaming and DraftKings”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simplicity Esports and Gaming	N/A	N/A	N/A	($1.79)	N/A
DraftKings	$4.77 billion	3.17	-$507.29 million	($0.65)	-46.77

Simplicity Esports and Gaming has higher earnings, but lower revenue than DraftKings. DraftKings is trading at a lower price-to-earnings ratio than Simplicity Esports and Gaming, indicating that it is currently the more affordable of the two stocks.

Summary

DraftKings beats Simplicity Esports and Gaming on 7 of the 10 factors compared between the two stocks.

About Simplicity Esports and Gaming

Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.

About DraftKings

DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. In addition, it offers DraftKings marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions. The company is headquartered in Boston, Massachusetts.