DraftKings (NASDAQ:DKNG – Get Free Report) and Boyd Gaming (NYSE:BYD – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.
Valuation and Earnings
This table compares DraftKings and Boyd Gaming”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DraftKings | $4.77 billion | 7.97 | -$507.29 million | ($0.65) | -65.74 |
| Boyd Gaming | $3.93 billion | 1.66 | $577.95 million | $6.50 | 12.53 |
Insider and Institutional Ownership
37.7% of DraftKings shares are owned by institutional investors. Comparatively, 76.8% of Boyd Gaming shares are owned by institutional investors. 47.1% of DraftKings shares are owned by company insiders. Comparatively, 22.0% of Boyd Gaming shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
DraftKings has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, Boyd Gaming has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Profitability
This table compares DraftKings and Boyd Gaming’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DraftKings | -5.63% | -30.06% | -6.80% |
| Boyd Gaming | 14.02% | 40.65% | 9.42% |
Analyst Ratings
This is a breakdown of recent ratings for DraftKings and Boyd Gaming, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DraftKings | 0 | 2 | 25 | 0 | 2.93 |
| Boyd Gaming | 1 | 6 | 7 | 0 | 2.43 |
DraftKings currently has a consensus price target of $54.50, suggesting a potential upside of 27.55%. Boyd Gaming has a consensus price target of $86.6154, suggesting a potential upside of 6.37%. Given DraftKings’ stronger consensus rating and higher possible upside, research analysts plainly believe DraftKings is more favorable than Boyd Gaming.
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.
About Boyd Gaming
Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The company operates through Las Vegas Locals, Downtown Las Vegas, Midwest & South, and Online segments. It also engages in owning and operating a travel agency. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.
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