Comparing Texas Roadhouse (NASDAQ:TXRH) and Flutter Entertainment (NYSE:FLUT)

Texas Roadhouse (NASDAQ:TXRH – Get Free Report) and Flutter Entertainment (NYSE:FLUT – Get Free Report) are both large-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Insider & Institutional Ownership

94.8% of Texas Roadhouse shares are held by institutional investors. 0.5% of Texas Roadhouse shares are held by company insiders. Comparatively, 0.1% of Flutter Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Texas Roadhouse and Flutter Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Texas Roadhouse 6.63% 27.20% 11.75%
Flutter Entertainment -4.39% 7.27% 2.33%

Risk and Volatility

Texas Roadhouse has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Flutter Entertainment has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Texas Roadhouse and Flutter Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Texas Roadhouse 0 11 10 2 2.61
Flutter Entertainment 3 9 17 2 2.58

Texas Roadhouse currently has a consensus target price of $209.76, suggesting a potential upside of 29.88%. Flutter Entertainment has a consensus target price of $144.70, suggesting a potential upside of 81.42%. Given Flutter Entertainment’s higher probable upside, analysts plainly believe Flutter Entertainment is more favorable than Texas Roadhouse.

Valuation & Earnings

This table compares Texas Roadhouse and Flutter Entertainment”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Texas Roadhouse $5.88 billion 1.80 $405.55 million $6.25 25.84
Flutter Entertainment $16.38 billion 0.84 -$310.00 million ($4.30) -18.55

Texas Roadhouse has higher earnings, but lower revenue than Flutter Entertainment. Flutter Entertainment is trading at a lower price-to-earnings ratio than Texas Roadhouse, indicating that it is currently the more affordable of the two stocks.

Summary

Texas Roadhouse beats Flutter Entertainment on 10 of the 14 factors compared between the two stocks.

About Texas Roadhouse

(Get Free Report)

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.

About Flutter Entertainment

(Get Free Report)

Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting. In addition, it provides online poker, casino, and rummy. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, sisal.com, and maxbet.rs websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. Flutter Entertainment plc was incorporated in 1958 and is headquartered in Dublin, Ireland.

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