Century Casinos (NASDAQ:CNTY – Get Free Report) and DraftKings (NASDAQ:DKNG – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Profitability
This table compares Century Casinos and DraftKings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Century Casinos | -18.43% | -72.39% | -5.03% |
| DraftKings | -5.63% | -30.06% | -6.80% |
Volatility and Risk
Century Casinos has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500. Comparatively, DraftKings has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Century Casinos | $575.92 million | 0.14 | -$128.17 million | ($3.44) | -0.77 |
| DraftKings | $4.77 billion | 3.68 | -$507.29 million | ($0.65) | -54.42 |
Century Casinos has higher earnings, but lower revenue than DraftKings. DraftKings is trading at a lower price-to-earnings ratio than Century Casinos, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Century Casinos and DraftKings, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Century Casinos | 1 | 0 | 5 | 0 | 2.67 |
| DraftKings | 3 | 1 | 26 | 0 | 2.77 |
Century Casinos presently has a consensus target price of $5.00, indicating a potential upside of 87.97%. DraftKings has a consensus target price of $53.89, indicating a potential upside of 52.37%. Given Century Casinos’ higher possible upside, research analysts plainly believe Century Casinos is more favorable than DraftKings.
Insider & Institutional Ownership
66.4% of Century Casinos shares are held by institutional investors. Comparatively, 37.7% of DraftKings shares are held by institutional investors. 13.0% of Century Casinos shares are held by company insiders. Comparatively, 51.2% of DraftKings 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.
Summary
DraftKings beats Century Casinos on 8 of the 14 factors compared between the two stocks.
About Century Casinos
Century Casinos, Inc. operates as a casino entertainment company in the United States, Canada, and Poland. It develops and operates gaming establishments, as well as related lodging, restaurant, and horse racing including, off-track betting; and entertainment facilities. The company was founded in 1992 and is based in Colorado Springs, Colorado.
About DraftKings
DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. In addition, it offers DraftKings marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions. The company is headquartered in Boston, Massachusetts.
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