Sharplink Gaming (NASDAQ:SBET – Get Free Report) and Churchill Downs (NASDAQ:CHDN – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.
Profitability
This table compares Sharplink Gaming and Churchill Downs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sharplink Gaming | -3,377.39% | -15.93% | -15.81% |
| Churchill Downs | 13.99% | 42.54% | 6.11% |
Insider & Institutional Ownership
13.8% of Sharplink Gaming shares are held by institutional investors. Comparatively, 82.6% of Churchill Downs shares are held by institutional investors. 3.4% of Sharplink Gaming shares are held by insiders. Comparatively, 5.3% of Churchill Downs shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sharplink Gaming | $3.14 million | 846.00 | $10.10 million | ($5.01) | -2.76 |
| Churchill Downs | $2.88 billion | 2.40 | $426.80 million | $5.50 | 18.04 |
Churchill Downs has higher revenue and earnings than Sharplink Gaming. Sharplink Gaming is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Sharplink Gaming and Churchill Downs, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sharplink Gaming | 1 | 1 | 4 | 0 | 2.50 |
| Churchill Downs | 0 | 1 | 10 | 0 | 2.91 |
Sharplink Gaming currently has a consensus target price of $40.80, indicating a potential upside of 194.80%. Churchill Downs has a consensus target price of $137.60, indicating a potential upside of 38.71%. Given Sharplink Gaming’s higher probable upside, equities analysts plainly believe Sharplink Gaming is more favorable than Churchill Downs.
Risk & Volatility
Sharplink Gaming has a beta of 10.01, indicating that its stock price is 901% more volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.
Summary
Churchill Downs beats Sharplink Gaming on 11 of the 14 factors compared between the two stocks.
About Sharplink Gaming
SharpLink Gaming, Inc. operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company's sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers. It also provides iGaming and affiliate marketing network, which focuses on delivering quality traffic and player acquisitions, and retention and conversions to global iGaming operator partners worldwide; and development, hosting, operations, maintenance, and service of free-to-play games and contests. In addition, the company owns and operates various real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States, where fantasy sports play is legal and in which SportsHub has elected to operate based on the financial viability. SharpLink Gaming, Inc. was founded in 2019 and is headquartered in Minneapolis, Minnesota.
About Churchill Downs
Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.
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