DouYu International (NASDAQ:DOYU – Get Free Report) and DraftKings (NASDAQ:DKNG – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.
Insider and Institutional Ownership
17.9% of DouYu International shares are held by institutional investors. Comparatively, 37.7% of DraftKings shares are held by institutional investors. 17.3% of DouYu International shares are held by company insiders. Comparatively, 47.1% of DraftKings shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares DouYu International and DraftKings”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DouYu International | $585.10 million | 0.36 | -$42.03 million | ($0.91) | -7.62 |
| DraftKings | $4.77 billion | 3.50 | -$507.29 million | ($0.65) | -51.72 |
DouYu International has higher earnings, but lower revenue than DraftKings. DraftKings is trading at a lower price-to-earnings ratio than DouYu International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares DouYu International and DraftKings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DouYu International | -4.73% | -3.32% | -2.39% |
| DraftKings | -5.63% | -30.06% | -6.80% |
Analyst Ratings
This is a breakdown of current recommendations for DouYu International and DraftKings, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DouYu International | 1 | 3 | 0 | 0 | 1.75 |
| DraftKings | 3 | 1 | 27 | 0 | 2.77 |
DouYu International currently has a consensus price target of $7.00, suggesting a potential upside of 1.01%. DraftKings has a consensus price target of $52.83, suggesting a potential upside of 57.13%. Given DraftKings’ stronger consensus rating and higher possible upside, analysts clearly believe DraftKings is more favorable than DouYu International.
Volatility and Risk
DouYu International has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, DraftKings has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500.
Summary
DraftKings beats DouYu International on 9 of the 14 factors compared between the two stocks.
About DouYu International
DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.
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.
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