Monarch Casino & Resort (NASDAQ:MCRI – Get Free Report) and DraftKings (NASDAQ:DKNG – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Risk and Volatility
Monarch Casino & Resort has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, DraftKings has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.
Earnings & Valuation
This table compares Monarch Casino & Resort and DraftKings”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Monarch Casino & Resort | $522.19 million | 3.25 | $72.77 million | $5.54 | 16.78 |
| DraftKings | $4.77 billion | 3.67 | -$507.29 million | ($0.57) | -61.70 |
Monarch Casino & Resort has higher earnings, but lower revenue than DraftKings. DraftKings is trading at a lower price-to-earnings ratio than Monarch Casino & Resort, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Monarch Casino & Resort and DraftKings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Monarch Casino & Resort | 19.26% | 19.33% | 14.67% |
| DraftKings | -4.90% | -22.84% | -4.63% |
Insider and Institutional Ownership
62.4% of Monarch Casino & Resort shares are owned by institutional investors. Comparatively, 37.7% of DraftKings shares are owned by institutional investors. 25.5% of Monarch Casino & Resort shares are owned by company insiders. Comparatively, 51.2% of DraftKings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for Monarch Casino & Resort and DraftKings, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Monarch Casino & Resort | 0 | 5 | 2 | 0 | 2.29 |
| DraftKings | 2 | 5 | 25 | 0 | 2.72 |
Monarch Casino & Resort currently has a consensus price target of $99.40, indicating a potential upside of 6.92%. DraftKings has a consensus price target of $47.07, indicating a potential upside of 33.83%. Given DraftKings’ stronger consensus rating and higher possible upside, analysts clearly believe DraftKings is more favorable than Monarch Casino & Resort.
About Monarch Casino & Resort
Monarch Casino & Resort, Inc. engages in the ownership and operation of the Atlantis Casino Resort Spa, a hotel and casino facility in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado. The company was founded in 1993 and is headquartered in Reno, NV.
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.
Receive News & Ratings for Monarch Casino & Resort Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Monarch Casino & Resort and related companies with MarketBeat.com's FREE daily email newsletter.
