DraftKings (NASDAQ:DKNG – Get Free Report) and Sweetgreen (NYSE:SG – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.
Insider & Institutional Ownership
37.7% of DraftKings shares are held by institutional investors. Comparatively, 95.8% of Sweetgreen shares are held by institutional investors. 47.2% of DraftKings shares are held by company insiders. Comparatively, 18.2% of Sweetgreen shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current recommendations for DraftKings and Sweetgreen, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DraftKings | 2 | 8 | 29 | 1 | 2.73 |
| Sweetgreen | 3 | 12 | 4 | 0 | 2.05 |
Volatility & Risk
DraftKings has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Sweetgreen has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500.
Valuation and Earnings
This table compares DraftKings and Sweetgreen”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DraftKings | $6.05 billion | 2.06 | $3.71 million | ($0.38) | -66.24 |
| Sweetgreen | $679.47 million | 1.13 | -$134.07 million | $0.10 | 64.74 |
DraftKings has higher revenue and earnings than Sweetgreen. DraftKings is trading at a lower price-to-earnings ratio than Sweetgreen, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares DraftKings and Sweetgreen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DraftKings | -2.68% | -11.26% | -1.61% |
| Sweetgreen | 2.01% | -32.94% | -16.42% |
Summary
DraftKings beats Sweetgreen on 10 of the 15 factors compared between the two stocks.
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.
About Sweetgreen
Sweetgreen, Inc., together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.
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