DraftKings vs Flutter Entertainment Which Is More Profitable?

DraftKings and Flutter Entertainment are two leading companies in the online gambling and sports betting industry. While both companies have experienced significant growth in recent years, they have taken different approaches to expansion and diversification. DraftKings is known for its focus on daily fantasy sports and sports betting, while Flutter Entertainment operates a diverse portfolio of brands including FanDuel and Paddy Power. Investors interested in the gaming industry should carefully consider the strengths and weaknesses of both companies before making any investment decisions.

DraftKings or Flutter Entertainment?

When comparing DraftKings and Flutter Entertainment, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between DraftKings and Flutter Entertainment.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. DraftKings has a dividend yield of -%, while Flutter Entertainment has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. DraftKings reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Flutter Entertainment reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with DraftKings P/E ratio at -48.35 and Flutter Entertainment's P/E ratio at -68.33. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. DraftKings P/B ratio is 18.74 while Flutter Entertainment's P/B ratio is 4.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, DraftKings has seen a 5-year revenue growth of 5.46%, while Flutter Entertainment's is 0.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DraftKings's ROE at -41.23% and Flutter Entertainment's ROE at -7.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $41.18 for DraftKings and $276.50 for Flutter Entertainment. Over the past year, DraftKings's prices ranged from $28.69 to $49.57, with a yearly change of 72.78%. Flutter Entertainment's prices fluctuated between $158.43 and $284.79, with a yearly change of 79.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.