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
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
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
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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