Flutter Entertainment (NYSE:FLUT – Get Free Report) and GDS (NASDAQ:GDS – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Flutter Entertainment and GDS, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flutter Entertainment | 0 | 0 | 20 | 1 | 3.05 |
| GDS | 0 | 1 | 5 | 3 | 3.22 |
Flutter Entertainment presently has a consensus price target of $306.28, suggesting a potential upside of 22.89%. GDS has a consensus price target of $39.48, suggesting a potential upside of 44.99%. Given GDS’s stronger consensus rating and higher possible upside, analysts plainly believe GDS is more favorable than Flutter Entertainment.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Flutter Entertainment | -6.86% | -4.52% | -1.85% |
| GDS | -35.97% | -8.22% | -1.99% |
Earnings & Valuation
This table compares Flutter Entertainment and GDS”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flutter Entertainment | $14.32 billion | 3.08 | -$1.22 billion | $2.89 | 86.24 |
| GDS | $10.32 billion | 0.50 | -$606.18 million | $2.51 | 10.85 |
GDS has lower revenue, but higher earnings than Flutter Entertainment. GDS is trading at a lower price-to-earnings ratio than Flutter Entertainment, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
33.7% of GDS shares are owned by institutional investors. 8.0% of GDS shares are owned by 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
Flutter Entertainment beats GDS on 8 of the 14 factors compared between the two stocks.
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.
About GDS
GDS Holdings Limited, together with its subsidiaries, develops and operates data centers in the People's Republic of China. The company provides colocation services comprising critical facilities space, customer-available power, racks, and cooling; managed hosting services, including business continuity and disaster recovery, network management, data storage, system security, operating system, database, and server middleware services; managed cloud services; and consulting services. It serves cloud service providers, large Internet companies, financial institutions, telecommunications and IT service providers, and large domestic private sector and multinational corporations. GDS Holdings Limited was founded in 2001 and is headquartered in Shanghai, the People's Republic of China.
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