Critical Review: Flutter Entertainment (NYSE:FLUT) & UbiSoft Entertainment (OTCMKTS:UBSFY)

Flutter Entertainment (NYSE:FLUT) and UbiSoft Entertainment (OTCMKTS:UBSFY) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Volatility and Risk

Flutter Entertainment has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, UbiSoft Entertainment has a beta of -0.14, indicating that its stock price is 114% less volatile than the S&P 500.

Profitability

This table compares Flutter Entertainment and UbiSoft Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flutter Entertainment	-0.95%	14.42%	5.23%
UbiSoft Entertainment	N/A	N/A	N/A

Institutional and Insider Ownership

0.1% of UbiSoft Entertainment shares are owned by institutional investors. 0.1% of Flutter Entertainment shares are owned by 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.

Earnings & Valuation

This table compares Flutter Entertainment and UbiSoft Entertainment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flutter Entertainment	$14.05 billion	1.90	$43.00 million	($1.30)	-117.48
UbiSoft Entertainment	$2.04 billion	0.30	-$170.71 million	N/A	N/A

Flutter Entertainment has higher revenue and earnings than UbiSoft Entertainment.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Flutter Entertainment and UbiSoft Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flutter Entertainment	2	5	17	3	2.78
UbiSoft Entertainment	1	0	0	1	2.50

Flutter Entertainment currently has a consensus price target of $276.05, suggesting a potential upside of 80.74%. Given Flutter Entertainment’s stronger consensus rating and higher probable upside, research analysts clearly believe Flutter Entertainment is more favorable than UbiSoft Entertainment.

Summary

Flutter Entertainment beats UbiSoft Entertainment on 11 of the 13 factors compared between the two stocks.

About Flutter Entertainment

Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting. In addition, it provides online poker, casino, and rummy. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, sisal.com, and maxbet.rs websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. Flutter Entertainment plc was incorporated in 1958 and is headquartered in Dublin, Ireland.

About UbiSoft Entertainment

Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats in Europe, North America, and internationally. The company designs and develops software, including scenarios, animation, gameplay, layouts, and game rules, as well as develops design tools and game engines. It is involved in the development in the area of online and mobile gaming; and film business. Ubisoft Entertainment SA was incorporated in 1986 and is headquartered in Saint-Mandé, France.