Roblox (NYSE:RBLX – Get Free Report) and DraftKings (NASDAQ:DKNG – Get Free Report) are both large-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.
Earnings & Valuation
This table compares Roblox and DraftKings”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Roblox | $3.60 billion | 17.31 | -$935.38 million | ($1.43) | -66.60 |
| DraftKings | $4.77 billion | 3.46 | -$507.29 million | ($0.57) | -58.16 |
Analyst Ratings
This is a breakdown of recent ratings for Roblox and DraftKings, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roblox | 3 | 8 | 20 | 0 | 2.55 |
| DraftKings | 2 | 5 | 25 | 0 | 2.72 |
Roblox currently has a consensus price target of $136.41, indicating a potential upside of 43.22%. DraftKings has a consensus price target of $47.38, indicating a potential upside of 42.92%. Given Roblox’s higher probable upside, analysts plainly believe Roblox is more favorable than DraftKings.
Insider and Institutional Ownership
94.5% of Roblox shares are held by institutional investors. Comparatively, 37.7% of DraftKings shares are held by institutional investors. 12.9% of Roblox shares are held by company insiders. Comparatively, 51.2% of DraftKings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Roblox and DraftKings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Roblox | -21.70% | -314.20% | -12.47% |
| DraftKings | -4.90% | -22.84% | -4.63% |
Volatility & Risk
Roblox has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, DraftKings has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500.
Summary
DraftKings beats Roblox on 11 of the 14 factors compared between the two stocks.
About Roblox
Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.
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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