DraftKings Inc. (DKNG) vs Rush Street Interactive, Inc. (RSI)

DraftKings Inc. and Rush Street Interactive, Inc. are both Gambling companies. DraftKings Inc. is the larger, with a market value of $18.7B against $4.5B — 4.1× the size. DraftKings Inc. has negative trailing earnings, so its P/E is not meaningful; Rush Street Interactive, Inc. trades at 66.2×. Rush Street Interactive, Inc. grew revenue faster over the last twelve months: 34.3% against 15.0%. Rush Street Interactive, Inc. has the higher net margin (2.33% vs −2.68%) and the higher return on invested capital (0.00% vs −11.2%). Across the 21 metrics below, Rush Street Interactive, Inc. leads on 19 and DraftKings Inc. on 2.

Valuation

Metric DKNG RSI Gambling median
P/E n/m 66.23 16.33
P/S 1.76 1.61 0.86
P/B 19.18 6.50 3.20
Price to free cash flow 21.97 14.67 18.30
EV/EBITDA 103.73 10.36 9.68
EV/Sales 1.83 1.36 1.63
Earnings yield (1.54%) 1.51% (0.02%)
Free cash flow yield 4.55% 6.82% 4.45%

Profitability

Metric DKNG RSI Gambling median
Gross margin 40.54% 34.97% 51.63%
Operating margin (2.93%) 10.04% (1.47%)
Net margin (2.68%) 2.33% (3.01%)
Free cash flow margin 7.99% 11.01% 2.54%
Return on equity (21.14%) 10.80% 10.65%
Return on assets (3.81%) 4.78% (1.07%)
Return on invested capital (11.21%) 0.00% 0.00%

Growth

Metric DKNG RSI Gambling median
Revenue growth (TTM) 15.03% 34.29% 5.73%
EPS growth (last fiscal year) 100.71% 933.33% —
Revenue growth, 5-year CAGR 58.02% 32.43% 23.46%
Net income growth, 5-year CAGR 0.00% 98.49% 0.00%

Health

Metric DKNG RSI Gambling median
Debt to equity 3.22 0.00 0.13
Current ratio 1.02 2.12 1.06
Net debt to EBITDA 0.89 (2.67) 0.25

Dividend

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

Size

Metric DKNG RSI Gambling median
Market cap 18.67b 4.53b 673.72m

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