Flutter Entertainment (NYSE:FLUT – Get Free Report) and DraftKings (NASDAQ:DKNG – Get Free Report) are both large-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Institutional and Insider Ownership
37.7% of DraftKings shares are held by institutional investors. 0.1% of Flutter Entertainment shares are held by company insiders. Comparatively, 51.2% of DraftKings shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Flutter Entertainment and DraftKings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flutter Entertainment | -0.95% | 14.42% | 5.23% |
| DraftKings | -4.90% | -22.84% | -4.63% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flutter Entertainment | 1 | 4 | 17 | 3 | 2.88 |
| DraftKings | 2 | 5 | 25 | 0 | 2.72 |
Flutter Entertainment currently has a consensus target price of $302.45, suggesting a potential upside of 37.13%. DraftKings has a consensus target price of $47.07, suggesting a potential upside of 34.95%. Given Flutter Entertainment’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Flutter Entertainment is more favorable than DraftKings.
Volatility and Risk
Flutter Entertainment has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500. Comparatively, DraftKings has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.
Valuation & Earnings
This table compares Flutter Entertainment 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 | |
| Flutter Entertainment | $14.05 billion | 2.75 | $43.00 million | ($1.30) | -169.66 |
| DraftKings | $4.77 billion | 3.64 | -$507.29 million | ($0.57) | -61.19 |
Flutter Entertainment has higher revenue and earnings than DraftKings. Flutter Entertainment is trading at a lower price-to-earnings ratio than DraftKings, indicating that it is currently the more affordable of the two stocks.
Summary
Flutter Entertainment beats DraftKings on 9 of the 15 factors compared between the two stocks.
About Flutter Entertainment
Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting. In addition, it provides online poker, casino, and rummy. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, sisal.com, and maxbet.rs websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. Flutter Entertainment plc was incorporated in 1958 and is headquartered in Dublin, Ireland.
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.
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