DraftKings (NASDAQ:DKNG – Get Free Report) and Electronic Arts (NASDAQ:EA – Get Free Report) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Insider & Institutional Ownership
37.7% of DraftKings shares are held by institutional investors. Comparatively, 90.2% of Electronic Arts shares are held by institutional investors. 51.2% of DraftKings shares are held by company insiders. Comparatively, 0.2% of Electronic Arts shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings for DraftKings and Electronic Arts, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DraftKings | 1 | 7 | 23 | 0 | 2.71 |
| Electronic Arts | 1 | 19 | 4 | 0 | 2.13 |
Earnings and Valuation
This table compares DraftKings and Electronic Arts”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DraftKings | $4.77 billion | 2.63 | -$507.29 million | ($0.57) | -44.14 |
| Electronic Arts | $7.46 billion | 6.72 | $1.12 billion | $2.66 | 75.36 |
Electronic Arts has higher revenue and earnings than DraftKings. DraftKings is trading at a lower price-to-earnings ratio than Electronic Arts, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares DraftKings and Electronic Arts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DraftKings | -4.90% | -22.84% | -4.63% |
| Electronic Arts | 9.31% | 23.53% | 11.78% |
Risk and Volatility
DraftKings has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Summary
Electronic Arts beats DraftKings on 9 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 Electronic Arts
Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands. The company licenses its games to third parties to distribute and host its games. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.
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