DraftKings (DKNG) & Its Peers Critical Comparison

DraftKings (NASDAQ: DKNG) is one of 24 publicly-traded companies in the “Miscellaneous amusement & recreation services” industry, but how does it compare to its peers? We will compare DraftKings to similar businesses based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.

Institutional and Insider Ownership

55.4% of DraftKings shares are held by institutional investors. Comparatively, 45.5% of shares of all “Miscellaneous amusement & recreation services” companies are held by institutional investors. 62.0% of DraftKings shares are held by company insiders. Comparatively, 22.2% of shares of all “Miscellaneous amusement & recreation services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

DraftKings has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500. Comparatively, DraftKings’ peers have a beta of 1.77, suggesting that their average share price is 77% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
DraftKings -133.84% -49.11% -34.51%
DraftKings Competitors -260.74% -1,130.46% -47.54%

Valuation and Earnings

This table compares DraftKings and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
DraftKings $614.53 million -$1.23 billion -19.44
DraftKings Competitors $3.79 billion -$344.29 million -80.69

DraftKings’ peers have higher revenue and earnings than DraftKings. DraftKings is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and price targets for DraftKings and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DraftKings 0 6 21 0 2.78
DraftKings Competitors 145 830 1573 42 2.58

DraftKings presently has a consensus price target of $68.46, indicating a potential upside of 27.61%. As a group, “Miscellaneous amusement & recreation services” companies have a potential upside of 6.55%. Given DraftKings’ stronger consensus rating and higher possible upside, equities analysts plainly believe DraftKings is more favorable than its peers.

Summary

DraftKings beats its peers on 10 of the 13 factors compared.

DraftKings Company Profile

DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States. It operates through two segments, Business-to-Consumer and Business-to-Business. The company provides users with daily sports, sports betting, and iGaming opportunities. It is also involved in the design, development, and licensing of sports betting and casino gaming platform software for online and retail sportsbook, and casino gaming products. The company distributes its product offerings through various channels, including traditional websites, direct app downloads, and direct-to-consumer digital platforms. DraftKings Inc. is headquartered in Boston, Massachusetts.

Receive News & Ratings for DraftKings Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DraftKings and related companies with MarketBeat.com's FREE daily email newsletter.