Head-To-Head Analysis: DraftKings (NASDAQ:DKNG) & Sweetgreen (NYSE:SG)

Sweetgreen (NYSE:SG) and DraftKings (NASDAQ:DKNG) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

95.8% of Sweetgreen shares are owned by institutional investors. Comparatively, 37.7% of DraftKings shares are owned by institutional investors. 18.2% of Sweetgreen shares are owned by insiders. Comparatively, 47.2% of DraftKings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Sweetgreen has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500. Comparatively, DraftKings has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sweetgreen and DraftKings”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sweetgreen	$679.47 million	1.06	-$134.07 million	$0.10	60.39
DraftKings	$6.05 billion	2.08	$3.71 million	($0.38)	-66.89

DraftKings has higher revenue and earnings than Sweetgreen. DraftKings is trading at a lower price-to-earnings ratio than Sweetgreen, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sweetgreen and DraftKings’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sweetgreen	2.01%	-34.03%	-16.69%
DraftKings	-2.68%	-10.88%	-1.59%

Analyst Ratings

This is a breakdown of current recommendations for Sweetgreen and DraftKings, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sweetgreen	3	12	4	0	2.05
DraftKings	2	8	29	1	2.73

Sweetgreen currently has a consensus target price of $7.10, indicating a potential upside of 17.57%. DraftKings has a consensus target price of $34.11, indicating a potential upside of 34.18%. Given DraftKings’ stronger consensus rating and higher probable upside, analysts clearly believe DraftKings is more favorable than Sweetgreen.

Summary

DraftKings beats Sweetgreen on 10 of the 15 factors compared between the two stocks.

About Sweetgreen

Sweetgreen, Inc., together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.

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.