Sweetgreen (NYSE:SG – Get Free Report) and DraftKings (NASDAQ:DKNG – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Institutional & Insider 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 company insiders. Comparatively, 47.2% of DraftKings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations for Sweetgreen and DraftKings, as reported by MarketBeat.com.
| 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 |
Valuation and Earnings
This table compares Sweetgreen and DraftKings”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sweetgreen | $679.47 million | 1.03 | -$134.07 million | $0.10 | 59.00 |
| DraftKings | $6.22 billion | 2.02 | $3.71 million | ($0.38) | -66.58 |
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.
Volatility and Risk
Sweetgreen has a beta of 2.2, meaning that its share price is 120% more volatile than the S&P 500. Comparatively, DraftKings has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500.
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% | -32.94% | -16.42% |
| DraftKings | -2.68% | -11.26% | -1.61% |
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.
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