Financial Contrast: Six Flags Entertainment (NYSE:SIX) & Draftkings (NYSE:DKNG)

Six Flags Entertainment (NYSE:SIX) and Draftkings (NASDAQ:DKNG) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Profitability

This table compares Six Flags Entertainment and Draftkings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Six Flags Entertainment -5.26% -23.63% -1.45%
Draftkings N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings and target prices for Six Flags Entertainment and Draftkings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Six Flags Entertainment 1 7 6 0 2.36
Draftkings 0 5 11 0 2.69

Six Flags Entertainment presently has a consensus price target of $23.46, indicating a potential downside of 3.33%. Draftkings has a consensus price target of $48.25, indicating a potential upside of 0.08%. Given Draftkings’ stronger consensus rating and higher possible upside, analysts plainly believe Draftkings is more favorable than Six Flags Entertainment.

Institutional & Insider Ownership

80.7% of Six Flags Entertainment shares are held by institutional investors. Comparatively, 51.5% of Draftkings shares are held by institutional investors. 1.0% of Six Flags Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Six Flags Entertainment and Draftkings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Six Flags Entertainment $1.49 billion 1.38 $179.07 million $2.24 10.83
Draftkings N/A N/A $2.31 million N/A N/A

Six Flags Entertainment has higher revenue and earnings than Draftkings.

Risk and Volatility

Six Flags Entertainment has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500. Comparatively, Draftkings has a beta of 2.37, meaning that its share price is 137% more volatile than the S&P 500.

Summary

Draftkings beats Six Flags Entertainment on 7 of the 11 factors compared between the two stocks.

Six Flags Entertainment Company Profile

Six Flags Entertainment Corporation owns and operates regional theme and water parks under the Six Flags name. The company's parks offer various thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. It owns and operates 25 parks, including 22 parks in the United States; 2 parks in Mexico; and 1 park in Montreal, Canada. The company was formerly known as Six Flags, Inc. and changed its name to Six Flags Entertainment Corporation in April 2010. Six Flags Entertainment Corporation was founded in 1961 and is based in Grand Prairie, Texas.

Draftkings Company Profile

DraftKings Inc. operates as a digital sports entertainment and gaming company. It provides users with daily sports, sports betting, and iGaming opportunities. It is also involved the design and development of sports betting and casino gaming platform software for online and retail sportsbook, and casino gaming products. The company is based in Boston, Massachusetts.

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