DouYu International (NASDAQ:DOYU – Get Free Report) and Churchill Downs (NASDAQ:CHDN – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Profitability
This table compares DouYu International and Churchill Downs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DouYu International | -4.74% | -1.57% | -1.07% |
| Churchill Downs | 13.99% | 42.54% | 6.11% |
Earnings and Valuation
This table compares DouYu International and Churchill Downs”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DouYu International | $585.10 million | 0.36 | -$42.03 million | ($0.88) | -8.03 |
| Churchill Downs | $2.73 billion | 2.93 | $426.80 million | $5.50 | 20.87 |
Churchill Downs has higher revenue and earnings than DouYu International. DouYu International is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
17.9% of DouYu International shares are held by institutional investors. Comparatively, 82.6% of Churchill Downs shares are held by institutional investors. 17.3% of DouYu International shares are held by company insiders. Comparatively, 5.3% of Churchill Downs shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for DouYu International and Churchill Downs, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DouYu International | 1 | 3 | 0 | 0 | 1.75 |
| Churchill Downs | 0 | 1 | 9 | 1 | 3.00 |
DouYu International currently has a consensus target price of $7.00, indicating a potential downside of 0.99%. Churchill Downs has a consensus target price of $133.30, indicating a potential upside of 16.16%. Given Churchill Downs’ stronger consensus rating and higher possible upside, analysts clearly believe Churchill Downs is more favorable than DouYu International.
Risk & Volatility
DouYu International has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.
Summary
Churchill Downs beats DouYu International on 13 of the 14 factors compared between the two stocks.
About DouYu International
DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.
About Churchill Downs
Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.
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