Flutter Entertainment (NYSE:FLUT – Get Free Report) and GameStop (NYSE:GME – Get Free Report) are both large-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Profitability
This table compares Flutter Entertainment and GameStop’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flutter Entertainment | -1.89% | 12.12% | 4.19% |
| GameStop | 11.53% | 12.47% | 6.73% |
Institutional & Insider Ownership
29.2% of GameStop shares are held by institutional investors. 0.1% of Flutter Entertainment shares are held by company insiders. Comparatively, 8.6% of GameStop shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flutter Entertainment | 3 | 6 | 14 | 2 | 2.60 |
| GameStop | 1 | 1 | 0 | 0 | 1.50 |
Flutter Entertainment presently has a consensus target price of $214.40, suggesting a potential upside of 94.94%. GameStop has a consensus target price of $13.50, suggesting a potential downside of 44.87%. Given Flutter Entertainment’s stronger consensus rating and higher probable upside, research analysts clearly believe Flutter Entertainment is more favorable than GameStop.
Earnings & Valuation
This table compares Flutter Entertainment and GameStop”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flutter Entertainment | $16.38 billion | 1.17 | -$310.00 million | ($1.80) | -61.10 |
| GameStop | $3.63 billion | 3.02 | $418.40 million | $0.75 | 32.65 |
GameStop has lower revenue, but higher earnings than Flutter Entertainment. Flutter Entertainment is trading at a lower price-to-earnings ratio than GameStop, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Flutter Entertainment has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, GameStop has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.
Summary
GameStop beats Flutter Entertainment on 9 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 GameStop
GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, as well as engages in the digital asset wallet and NFT marketplace activities. The company operates stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer magazine, a print and digital gaming publication. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.
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