Skillz (NYSE:SKLZ – Get Free Report) and Flutter Entertainment (NYSE:FLUT – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Analyst Ratings
This is a breakdown of current ratings and target prices for Skillz and Flutter Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Skillz | 1 | 0 | 1 | 0 | 2.00 |
| Flutter Entertainment | 2 | 6 | 15 | 2 | 2.68 |
Skillz presently has a consensus price target of $15.00, suggesting a potential upside of 487.54%. Flutter Entertainment has a consensus price target of $223.25, suggesting a potential upside of 109.69%. Given Skillz’s higher possible upside, analysts clearly believe Skillz is more favorable than Flutter Entertainment.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Skillz | -69.44% | -50.96% | -22.19% |
| Flutter Entertainment | -1.89% | 12.12% | 4.19% |
Risk and Volatility
Skillz has a beta of 3.08, meaning that its share price is 208% more volatile than the S&P 500. Comparatively, Flutter Entertainment has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.
Valuation and Earnings
This table compares Skillz and Flutter Entertainment”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Skillz | $104.50 million | 0.37 | -$46.79 million | ($3.71) | -0.69 |
| Flutter Entertainment | $16.38 billion | 1.14 | -$310.00 million | ($1.80) | -59.15 |
Skillz has higher earnings, but lower revenue than Flutter Entertainment. Flutter Entertainment is trading at a lower price-to-earnings ratio than Skillz, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
19.4% of Skillz shares are held by institutional investors. 38.3% of Skillz shares are held by insiders. Comparatively, 0.1% of Flutter Entertainment shares are held by 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.
Summary
Flutter Entertainment beats Skillz on 9 of the 15 factors compared between the two stocks.
About Skillz
Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.
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.
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