DraftKings (DKNG) versus Its Rivals Head-To-Head Analysis

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

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, 22.1% of shares of all “Miscellaneous amusement & recreation services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

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

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
DraftKings $614.53 million -$1.23 billion -18.50
DraftKings Competitors $3.79 billion -$344.29 million -72.33

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

Profitability

This table compares DraftKings and its rivals’ 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 -260.09% -1,130.17% -47.14%

Analyst Ratings

This is a breakdown of recent ratings and price targets for DraftKings and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DraftKings 0 6 21 0 2.78
DraftKings Competitors 145 834 1580 42 2.58

DraftKings presently has a consensus target price of $68.46, suggesting a potential upside of 34.08%. As a group, “Miscellaneous amusement & recreation services” companies have a potential upside of 7.10%. Given DraftKings’ stronger consensus rating and higher possible upside, equities analysts clearly believe DraftKings is more favorable than its rivals.

Summary

DraftKings beats its rivals on 9 of the 12 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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