Flutter Entertainment (NYSE:FLUT – Get Free Report) and TrueCar (NASDAQ:TRUE – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.
Institutional & Insider Ownership
79.4% of TrueCar shares are held by institutional investors. 3.3% of TrueCar shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Flutter Entertainment and TrueCar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flutter Entertainment | -6.86% | -4.52% | -1.85% |
| TrueCar | -17.68% | -17.54% | -13.79% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flutter Entertainment | $14.05 billion | 2.92 | -$1.22 billion | $0.22 | 1,051.94 |
| TrueCar | $175.60 million | 0.72 | -$49.77 million | ($0.34) | -4.24 |
TrueCar has lower revenue, but higher earnings than Flutter Entertainment. TrueCar is trading at a lower price-to-earnings ratio than Flutter Entertainment, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and price targets for Flutter Entertainment and TrueCar, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flutter Entertainment | 0 | 0 | 19 | 1 | 3.05 |
| TrueCar | 2 | 1 | 3 | 0 | 2.17 |
Flutter Entertainment currently has a consensus target price of $311.41, indicating a potential upside of 34.56%. TrueCar has a consensus target price of $4.63, indicating a potential upside of 221.18%. Given TrueCar’s higher probable upside, analysts plainly believe TrueCar is more favorable than Flutter Entertainment.
Summary
Flutter Entertainment beats TrueCar on 10 of the 14 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 TrueCar
TrueCar, Inc. operates as an internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications. Its platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. The company also offers forecast and consulting services regarding determination of the residual value of an automobile at given future points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. In addition, it provides TrueCar Trade, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. The company was incorporated in 2005 and is headquartered in Santa Monica, California.
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