PLANT vs DraftKings Which Is a Better Investment?

Plant-based food company Beyond Meat (PLANT) and fantasy sports and online betting company DraftKings (DKNG) are two popular stocks in the market today. PLANT has been a leader in the rapidly growing plant-based food industry, while DKNG has capitalized on the rise of online sports betting and fantasy sports. Both companies have seen significant growth in recent years, but investors may be torn between the sustainability-focused PLANT and the excitement and potential of DKNG. Let's dive deeper into the pros and cons of investing in these two stocks.

PLANT or DraftKings?

When comparing PLANT 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 PLANT 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. PLANT has a dividend yield of 3.28%, while DraftKings has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PLANT reports a 5-year dividend growth of -4.36% 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 PLANT P/E ratio at 31.25 and DraftKings's P/E ratio at -46.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PLANT P/B ratio is 0.79 while DraftKings's P/B ratio is 18.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PLANT has seen a 5-year revenue growth of 0.14%, while DraftKings's is 5.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PLANT's ROE at 2.38% and DraftKings's ROE at -41.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1521.00 for PLANT and $38.94 for DraftKings. Over the past year, PLANT's prices ranged from ¥1243.00 to ¥2190.00, with a yearly change of 76.19%. 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.