SeaWorld Entertainment (NYSE:SEAS) and Draftkings (NYSE:DKNG) Financial Survey

SeaWorld Entertainment (NYSE:SEAS) and Draftkings (NASDAQ:DKNG) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings for SeaWorld Entertainment and Draftkings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SeaWorld Entertainment 1 3 6 0 2.50
Draftkings 0 5 11 0 2.69

SeaWorld Entertainment presently has a consensus price target of $19.60, indicating a potential downside of 7.06%. Draftkings has a consensus price target of $48.25, indicating a potential upside of 0.08%. Given Draftkings’ stronger consensus rating and higher possible upside, analysts clearly believe Draftkings is more favorable than SeaWorld Entertainment.

Profitability

This table compares SeaWorld Entertainment and Draftkings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SeaWorld Entertainment -12.05% -54.88% -3.36%
Draftkings N/A N/A N/A

Earnings and Valuation

This table compares SeaWorld Entertainment and Draftkings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SeaWorld Entertainment $1.40 billion 1.18 $89.48 million $1.58 13.35
Draftkings N/A N/A $2.31 million N/A N/A

SeaWorld Entertainment has higher revenue and earnings than Draftkings.

Insider and Institutional Ownership

51.5% of Draftkings shares are held by institutional investors. 0.8% of SeaWorld Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

SeaWorld Entertainment has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500. Comparatively, Draftkings has a beta of 2.37, meaning that its share price is 137% more volatile than the S&P 500.

Summary

Draftkings beats SeaWorld Entertainment on 8 of the 11 factors compared between the two stocks.

About SeaWorld Entertainment

SeaWorld Entertainment, Inc., together with its subsidiaries, operates as a theme park and entertainment company in the United States. The company operates SeaWorld theme parks in Orlando, Florida; San Antonio, Texas; and San Diego, California, as well as Busch Gardens theme parks in Tampa, Florida, and Williamsburg, Virginia. It also operates water park attractions in Orlando, Florida; San Antonio, Texas; San Diego, California; Tampa, Florida; and Williamsburg, Virginia. In addition, the company operates a reservations-only theme park in Orlando, Florida and a seasonal park in Langhorne, Pennsylvania. It operates a portfolio of 12 destination and regional theme parks. The company was formerly known as SW Holdco, Inc. and changed its name to SeaWorld Entertainment, Inc. in December 2012. SeaWorld Entertainment, Inc. was founded in 1959 and is headquartered in Orlando, Florida.

About Draftkings

DraftKings Inc. operates as a digital sports entertainment and gaming company. It provides users with daily sports, sports betting, and iGaming opportunities. It is also involved the design and development of sports betting and casino gaming platform software for online and retail sportsbook, and casino gaming products. The company is based in Boston, Massachusetts.

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