Head-To-Head Comparison: DraftKings (DKNG) vs. The Competition

DraftKings (NASDAQ: DKNG) is one of 24 public companies in the “Miscellaneous amusement & recreation services” industry, but how does it weigh in compared to its competitors? We will compare DraftKings to related companies based on the strength of its analyst recommendations, valuation, earnings, profitability, institutional ownership, dividends and risk.

Institutional & Insider Ownership

55.4% of DraftKings shares are held by institutional investors. Comparatively, 45.5% of shares of all “Miscellaneous amusement & recreation services” companies are held by institutional investors. 62.0% of DraftKings shares are held by company insiders. Comparatively, 22.2% of shares of all “Miscellaneous amusement & recreation services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for DraftKings and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DraftKings 0 6 21 0 2.78
DraftKings Competitors 145 830 1573 42 2.58

DraftKings currently has a consensus price target of $68.46, indicating a potential upside of 27.61%. As a group, “Miscellaneous amusement & recreation services” companies have a potential upside of 6.55%. Given DraftKings’ stronger consensus rating and higher probable upside, research analysts plainly believe DraftKings is more favorable than its competitors.

Profitability

This table compares DraftKings and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DraftKings -133.84% -49.11% -34.51%
DraftKings Competitors -260.74% -1,130.46% -47.54%

Valuation & Earnings

This table compares DraftKings and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
DraftKings $614.53 million -$1.23 billion -19.44
DraftKings Competitors $3.79 billion -$344.29 million -80.69

DraftKings’ competitors have higher revenue and earnings than DraftKings. DraftKings is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

DraftKings has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, DraftKings’ competitors have a beta of 1.77, indicating that their average stock price is 77% more volatile than the S&P 500.

Summary

DraftKings beats its competitors on 10 of the 13 factors compared.

DraftKings Company Profile

DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States. It operates through two segments, Business-to-Consumer and Business-to-Business. The company provides users with daily sports, sports betting, and iGaming opportunities. It is also involved in the design, development, and licensing of sports betting and casino gaming platform software for online and retail sportsbook, and casino gaming products. The company distributes its product offerings through various channels, including traditional websites, direct app downloads, and direct-to-consumer digital platforms. DraftKings Inc. is headquartered in Boston, Massachusetts.

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