Churchill Downs (NASDAQ:CHDN – Get Free Report) and Rush Street Interactive (NYSE:RSI – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.
Risk and Volatility
Churchill Downs has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Rush Street Interactive has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.
Earnings and Valuation
This table compares Churchill Downs and Rush Street Interactive”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Churchill Downs | $2.93 billion | 2.04 | $383.00 million | $5.83 | 14.70 |
| Rush Street Interactive | $1.13 billion | 5.56 | $33.31 million | $0.29 | 93.76 |
Churchill Downs has higher revenue and earnings than Rush Street Interactive. Churchill Downs is trading at a lower price-to-earnings ratio than Rush Street Interactive, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Churchill Downs and Rush Street Interactive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Churchill Downs | 13.82% | 42.16% | 6.31% |
| Rush Street Interactive | 2.33% | 18.88% | 8.57% |
Analyst Ratings
This is a breakdown of current ratings and target prices for Churchill Downs and Rush Street Interactive, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Churchill Downs | 0 | 1 | 10 | 0 | 2.91 |
| Rush Street Interactive | 0 | 3 | 9 | 1 | 2.85 |
Churchill Downs currently has a consensus price target of $134.89, indicating a potential upside of 57.43%. Rush Street Interactive has a consensus price target of $35.22, indicating a potential upside of 29.54%. Given Churchill Downs’ stronger consensus rating and higher possible upside, research analysts clearly believe Churchill Downs is more favorable than Rush Street Interactive.
Insider and Institutional Ownership
82.6% of Churchill Downs shares are owned by institutional investors. Comparatively, 24.8% of Rush Street Interactive shares are owned by institutional investors. 5.9% of Churchill Downs shares are owned by insiders. Comparatively, 52.9% of Rush Street Interactive shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Churchill Downs beats Rush Street Interactive on 9 of the 15 factors compared between the two stocks.
About Churchill Downs
Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.
About Rush Street Interactive
Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.
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