DraftKings (DKNG) & Its Competitors Head-To-Head Review

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

Volatility and Risk

DraftKings has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, DraftKings’ competitors have a beta of 1.41, suggesting that their average share price is 41% more volatile than the S&P 500.

Insider and 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 company insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

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	-62.02
DraftKings Competitors	$3.31 billion	$250.20 million	-154.52

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.

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	2.32%	-40.06%	2.12%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DraftKings	3	6	30	1	2.73
DraftKings Competitors	3795	17219	25498	901	2.50

DraftKings currently has a consensus price target of $32.79, indicating a potential upside of 39.15%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 57.24%. Given DraftKings’ competitors higher probable upside, analysts plainly believe DraftKings has less favorable growth aspects than its competitors.

Summary

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

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.