DraftKings (NASDAQ:DKNG – Get Free Report) and Galaxy Gaming (OTCMKTS:GLXZ – 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, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
Analyst Ratings
This is a summary of recent recommendations for DraftKings and Galaxy Gaming, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DraftKings | 0 | 2 | 25 | 0 | 2.93 |
| Galaxy Gaming | 0 | 0 | 0 | 0 | 0.00 |
DraftKings currently has a consensus target price of $54.50, suggesting a potential upside of 24.80%. Given DraftKings’ stronger consensus rating and higher possible upside, research analysts plainly believe DraftKings is more favorable than Galaxy Gaming.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| DraftKings | -5.63% | -30.06% | -6.80% |
| Galaxy Gaming | -13.60% | N/A | -12.08% |
Risk and Volatility
DraftKings has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Galaxy Gaming has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Valuation & Earnings
This table compares DraftKings and Galaxy Gaming”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DraftKings | $4.77 billion | 8.15 | -$507.29 million | ($0.65) | -67.18 |
| Galaxy Gaming | $31.74 million | 2.26 | -$2.63 million | ($0.16) | -17.69 |
Galaxy Gaming has lower revenue, but higher earnings than DraftKings. DraftKings is trading at a lower price-to-earnings ratio than Galaxy Gaming, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
37.7% of DraftKings shares are held by institutional investors. Comparatively, 0.4% of Galaxy Gaming shares are held by institutional investors. 51.2% of DraftKings shares are held by insiders. Comparatively, 21.9% of Galaxy Gaming shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
DraftKings beats Galaxy Gaming on 10 of the 14 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 Galaxy Gaming
Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.
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