Flutter Entertainment vs DraftKings Which Outperforms?

Flutter Entertainment and DraftKings are two major players in the online sports betting and iGaming industry. Flutter Entertainment, based in Ireland, owns popular brands such as Paddy Power and Betfair. On the other hand, DraftKings is a US-based company that has rapidly gained market share in the burgeoning American sports betting market. Both companies have seen significant growth in recent years, but investors should carefully consider factors such as regulatory challenges and competitive positioning when evaluating their stock prospects.

Flutter Entertainment or DraftKings?

When comparing Flutter Entertainment and DraftKings, 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 Flutter Entertainment and DraftKings.

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. Flutter Entertainment has a dividend yield of -%, while DraftKings has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Flutter Entertainment reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, DraftKings 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 Flutter Entertainment P/E ratio at -68.33 and DraftKings's P/E ratio at -48.35. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Flutter Entertainment P/B ratio is 4.88 while DraftKings's P/B ratio is 18.74.

Growth Investors:

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

Retail Investors:

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