Critical Survey: Wynn Resorts (NASDAQ:WYNN) & DraftKings (NASDAQ:DKNG)

DraftKings (NASDAQ:DKNG) and Wynn Resorts (NASDAQ:WYNN) are both large-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Profitability

This table compares DraftKings and Wynn Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DraftKings	-4.90%	-22.84%	-4.63%
Wynn Resorts	7.09%	-54.88%	4.74%

Analyst Ratings

This is a breakdown of current recommendations and price targets for DraftKings and Wynn Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DraftKings	2	5	25	0	2.72
Wynn Resorts	0	3	11	1	2.87

DraftKings currently has a consensus price target of $47.07, indicating a potential upside of 36.28%. Wynn Resorts has a consensus price target of $140.69, indicating a potential upside of 15.07%. Given DraftKings’ higher possible upside, analysts clearly believe DraftKings is more favorable than Wynn Resorts.

Institutional and Insider Ownership

37.7% of DraftKings shares are held by institutional investors. Comparatively, 88.6% of Wynn Resorts shares are held by institutional investors. 47.1% of DraftKings shares are held by company insiders. Comparatively, 0.5% of Wynn Resorts shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

DraftKings has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Wynn Resorts has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Earnings & Valuation

This table compares DraftKings and Wynn Resorts”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DraftKings	$4.77 billion	3.61	-$507.29 million	($0.57)	-60.59
Wynn Resorts	$7.13 billion	1.78	$501.08 million	$4.47	27.35

Wynn Resorts has higher revenue and earnings than DraftKings. DraftKings is trading at a lower price-to-earnings ratio than Wynn Resorts, indicating that it is currently the more affordable of the two stocks.

Summary

Wynn Resorts beats DraftKings on 9 of the 15 factors compared between the two stocks.

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 Wynn Resorts

Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.