PointsBet vs DraftKings Which Offers More Value?

PointsBet and DraftKings are two leading companies in the rapidly growing sports betting industry. PointsBet is an Australia-based sportsbook operator known for its innovative PointsBetting feature, while DraftKings is a US-based company that offers a comprehensive sports betting platform and daily fantasy sports contests. Investors are closely watching the performance of these two stocks as they navigate the evolving regulatory landscape and seek to capitalize on the increasing popularity of sports betting.

PointsBet or DraftKings?

When comparing PointsBet 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 PointsBet 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. PointsBet has a dividend yield of 28.69%, while DraftKings has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PointsBet 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 PointsBet P/E ratio at -3.02 and DraftKings's P/E ratio at -49.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PointsBet P/B ratio is 9.20 while DraftKings's P/B ratio is 19.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PointsBet has seen a 5-year revenue growth of 2.28%, while DraftKings's is 5.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PointsBet's ROE at -69.05% and DraftKings's ROE at -41.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.43 for PointsBet and $42.45 for DraftKings. Over the past year, PointsBet's prices ranged from $0.27 to $0.73, with a yearly change of 174.72%. 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.