DraftKings vs PointsBet Which Should You Buy?

DraftKings and PointsBet are two major players in the online sports betting and gambling industry. Both companies have experienced significant growth in recent years, driven by the increasing popularity of sports betting in the United States. While DraftKings is a more established company with a larger market share, PointsBet is a relatively newer entrant that has quickly gained traction with its innovative betting platform. Investors looking to capitalize on the booming sports betting market may find opportunities in both DraftKings and PointsBet stocks, but should carefully consider the strengths and weaknesses of each company before making investment decisions.

DraftKings or PointsBet?

When comparing DraftKings and PointsBet, 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 PointsBet.

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 PointsBet has a dividend yield of 30.72%. 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, PointsBet 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 -49.10 and PointsBet's P/E ratio at -2.79. 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 19.03 while PointsBet's P/B ratio is 8.47.

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 PointsBet's is 8.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DraftKings's ROE at -41.23% and PointsBet's ROE at -69.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $41.11 for DraftKings and $0.43 for PointsBet. Over the past year, DraftKings's prices ranged from $28.69 to $49.57, with a yearly change of 72.78%. PointsBet's prices fluctuated between $0.27 and $0.73, with a yearly change of 174.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.