DraftKings Inc. (DKNG) vs Light & Wonder, Inc. (LNWO)

DraftKings Inc. and Light & Wonder, Inc. are both Gambling companies. DraftKings Inc. is the larger, with a market value of $18.7B against $7.0B — 2.7× the size. DraftKings Inc. has negative trailing earnings, so its P/E is not meaningful; Light & Wonder, Inc. trades at 22.6×. DraftKings Inc. grew revenue faster over the last twelve months: 15.0% against 4.75%. Light & Wonder, Inc. has the higher net margin (8.09% vs −2.68%) and the higher return on invested capital (8.00% vs −11.2%). Across the 20 metrics below, Light & Wonder, Inc. leads on 12 and DraftKings Inc. on 8.

Valuation

Metric DKNG LNWO Gambling median
P/E n/m 22.65 16.33
P/S 1.76 1.78 0.86
P/B 19.18 19.79 3.20
Price to free cash flow 21.97 12.57 18.30
EV/EBITDA 103.73 16.36 9.68
EV/Sales 1.83 3.24 1.63
Earnings yield (1.54%) 4.42% (0.02%)
Free cash flow yield 4.55% 7.96% 4.45%

Profitability

Metric DKNG LNWO Gambling median
Gross margin 40.54% 74.35% 51.63%
Operating margin (2.93%) 19.83% (1.47%)
Net margin (2.68%) 8.09% (3.01%)
Free cash flow margin 7.99% 16.57% 2.54%
Return on equity (21.14%) 53.98% 10.65%
Return on assets (3.81%) 4.22% (1.07%)
Return on invested capital (11.21%) 8.00% 0.00%

Growth

Metric DKNG LNWO Gambling median
Revenue growth (TTM) 15.03% 4.75% 5.73%
EPS growth (last fiscal year) 100.71% (11.41%) —
Revenue growth, 5-year CAGR 58.02% 14.30% 23.46%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DKNG LNWO Gambling median
Debt to equity 3.22 16.99 0.13
Current ratio 1.02 1.73 1.06
Net debt to EBITDA 0.89 4.50 0.25

Dividend

Metric DKNG LNWO Gambling median
Dividend yield — — —
Payout ratio 0.00 0.00 0.00

Size

Metric DKNG LNWO Gambling median
Market cap 18.67b 7.03b 673.72m

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