Head to Head Survey: DraftKings (DKNG) & Its Peers

DraftKings (NASDAQ:DKNG) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its competitors? We will compare DraftKings to related businesses based on the strength of its valuation, risk, earnings, institutional ownership, analyst recommendations, dividends and profitability.

Risk and Volatility

DraftKings has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, DraftKings’ competitors have a beta of 1.44, meaning that their average share price is 44% more volatile than the S&P 500.

Insider & Institutional Ownership

37.7% of DraftKings shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 47.2% of DraftKings shares are owned by insiders. Comparatively, 22.2% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares DraftKings and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DraftKings	-2.68%	-11.26%	-1.61%
DraftKings Competitors	2.36%	-40.12%	2.12%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for DraftKings and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DraftKings	3	6	30	1	2.73
DraftKings Competitors	3792	17182	25455	901	2.50

DraftKings presently has a consensus price target of $33.01, suggesting a potential upside of 57.88%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 59.01%. Given DraftKings’ competitors higher possible upside, analysts plainly believe DraftKings has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares DraftKings and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DraftKings	$6.05 billion	$3.71 million	-55.03
DraftKings Competitors	$3.43 billion	$250.20 million	-147.13

DraftKings has higher revenue, but lower earnings than its competitors. DraftKings is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

DraftKings beats its competitors on 8 of the 13 factors compared.

DraftKings Company Profile

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.