Head-To-Head Survey: Flutter Entertainment (NYSE:FLUT) versus Texas Roadhouse (NASDAQ:TXRH)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Roadhouse	$6.23 billion	1.70	$405.55 million	$6.25	25.84
Flutter Entertainment	$17.16 billion	0.81	-$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.

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, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Flutter Entertainment has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Analyst Recommendations

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

	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 price target of $209.76, suggesting a potential upside of 29.88%. Flutter Entertainment has a consensus price target 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.

Insider & Institutional Ownership

94.8% of Texas Roadhouse shares are owned by institutional investors. 0.5% of Texas Roadhouse shares are owned by insiders. Comparatively, 0.1% of Flutter Entertainment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

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.