Churchill Downs (NASDAQ:CHDN) versus Rush Street Interactive (NYSE:RSI) Critical Survey

Rush Street Interactive (NYSE:RSI) and Churchill Downs (NASDAQ:CHDN) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Institutional & Insider Ownership

24.8% of Rush Street Interactive shares are owned by institutional investors. Comparatively, 82.6% of Churchill Downs shares are owned by institutional investors. 52.9% of Rush Street Interactive shares are owned by company insiders. Comparatively, 5.9% of Churchill Downs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Rush Street Interactive and Churchill Downs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rush Street Interactive	0	3	9	1	2.85
Churchill Downs	0	1	10	0	2.91

Rush Street Interactive presently has a consensus target price of $35.22, suggesting a potential upside of 33.56%. Churchill Downs has a consensus target price of $134.89, suggesting a potential upside of 60.85%. Given Churchill Downs’ stronger consensus rating and higher probable upside, analysts plainly believe Churchill Downs is more favorable than Rush Street Interactive.

Earnings and Valuation

This table compares Rush Street Interactive and Churchill Downs”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rush Street Interactive	$1.13 billion	5.39	$33.31 million	$0.29	90.93
Churchill Downs	$2.93 billion	2.00	$383.00 million	$5.83	14.38

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 Rush Street Interactive and Churchill Downs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rush Street Interactive	2.33%	18.88%	8.57%
Churchill Downs	13.82%	42.16%	6.31%

Volatility & Risk

Rush Street Interactive has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Summary

Churchill Downs beats Rush Street Interactive on 9 of the 15 factors compared between the two stocks.

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.

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.