Roblox (NYSE:RBLX – Get Free Report) and Flutter Entertainment (NYSE:FLUT – Get Free Report) are both large-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Roblox and Flutter Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Roblox | -20.69% | -277.69% | -11.74% |
| Flutter Entertainment | -2.20% | 11.60% | 3.81% |
Valuation and Earnings
This table compares Roblox and Flutter Entertainment”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Roblox | $4.89 billion | 6.47 | -$1.07 billion | ($1.58) | -29.81 |
| Flutter Entertainment | $16.38 billion | 1.03 | -$310.00 million | ($2.14) | -45.33 |
Flutter Entertainment has higher revenue and earnings than Roblox. Flutter Entertainment is trading at a lower price-to-earnings ratio than Roblox, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for Roblox and Flutter Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roblox | 1 | 14 | 12 | 1 | 2.46 |
| Flutter Entertainment | 4 | 7 | 15 | 2 | 2.54 |
Roblox currently has a consensus price target of $87.07, indicating a potential upside of 84.86%. Flutter Entertainment has a consensus price target of $189.26, indicating a potential upside of 95.12%. Given Flutter Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Flutter Entertainment is more favorable than Roblox.
Risk and Volatility
Roblox has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Flutter Entertainment has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.
Institutional and Insider Ownership
94.5% of Roblox shares are held by institutional investors. 10.1% of Roblox shares are held by company insiders. Comparatively, 0.1% of Flutter Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Flutter Entertainment beats Roblox on 10 of the 15 factors compared between the two stocks.
About Roblox
Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.
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.
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