DraftKings (NASDAQ:DKNG – Get Free Report) and Century Casinos (NASDAQ:CNTY – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Profitability
This table compares DraftKings and Century Casinos’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DraftKings | -5.63% | -30.06% | -6.80% |
| Century Casinos | -18.43% | -72.39% | -5.03% |
Insider and Institutional Ownership
37.7% of DraftKings shares are held by institutional investors. Comparatively, 66.4% of Century Casinos shares are held by institutional investors. 51.2% of DraftKings shares are held by insiders. Comparatively, 13.0% of Century Casinos shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DraftKings | $4.77 billion | 3.68 | -$507.29 million | ($0.65) | -54.42 |
| Century Casinos | $575.92 million | 0.14 | -$128.17 million | ($3.44) | -0.77 |
Century Casinos has lower revenue, but higher earnings than DraftKings. DraftKings is trading at a lower price-to-earnings ratio than Century Casinos, 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 DraftKings and Century Casinos, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DraftKings | 3 | 1 | 26 | 0 | 2.77 |
| Century Casinos | 1 | 0 | 5 | 0 | 2.67 |
DraftKings presently has a consensus target price of $53.89, suggesting a potential upside of 52.37%. Century Casinos has a consensus target price of $5.00, suggesting a potential upside of 87.97%. Given Century Casinos’ higher possible upside, analysts plainly believe Century Casinos is more favorable than DraftKings.
Volatility and Risk
DraftKings has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500. Comparatively, Century Casinos has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500.
Summary
DraftKings beats Century Casinos on 8 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 Century Casinos
Century Casinos, Inc. operates as a casino entertainment company in the United States, Canada, and Poland. It develops and operates gaming establishments, as well as related lodging, restaurant, and horse racing including, off-track betting; and entertainment facilities. The company was founded in 1992 and is based in Colorado Springs, Colorado.
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