Shake Shack (NYSE:SHAK) versus Flutter Entertainment (NYSE:FLUT) Head to Head Comparison

Flutter Entertainment (NYSE:FLUT) and Shake Shack (NYSE:SHAK) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Insider & Institutional Ownership

86.1% of Shake Shack shares are owned by institutional investors. 0.1% of Flutter Entertainment shares are owned by insiders. Comparatively, 8.3% of Shake Shack shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Flutter Entertainment and Shake Shack, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flutter Entertainment	3	8	17	2	2.60
Shake Shack	1	11	15	0	2.52

Flutter Entertainment presently has a consensus price target of $156.88, suggesting a potential upside of 56.38%. Shake Shack has a consensus price target of $89.74, suggesting a potential upside of 29.49%. Given Flutter Entertainment’s stronger consensus rating and higher possible upside, research analysts plainly believe Flutter Entertainment is more favorable than Shake Shack.

Profitability

This table compares Flutter Entertainment and Shake Shack’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flutter Entertainment	-4.39%	7.27%	2.33%
Shake Shack	2.56%	9.29%	2.71%

Volatility & Risk

Flutter Entertainment has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Shake Shack has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Valuation & Earnings

This table compares Flutter Entertainment and Shake Shack”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flutter Entertainment	$16.38 billion	1.06	-$310.00 million	($4.30)	-23.33
Shake Shack	$1.45 billion	2.05	$45.72 million	$0.94	73.72

Shake Shack has lower revenue, but higher earnings than Flutter Entertainment. Flutter Entertainment is trading at a lower price-to-earnings ratio than Shake Shack, indicating that it is currently the more affordable of the two stocks.

Summary

Shake Shack beats Flutter Entertainment on 10 of the 15 factors compared between the two stocks.

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.

About Shake Shack

Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is headquartered in New York, New York.