Reviewing Flutter Entertainment (NYSE:FLUT) & Texas Roadhouse (NASDAQ:TXRH)

Flutter Entertainment (NYSE:FLUT) and Texas Roadhouse (NASDAQ:TXRH) are both large-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares Flutter Entertainment and Texas Roadhouse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flutter Entertainment	-4.39%	7.27%	2.33%
Texas Roadhouse	6.63%	27.20%	11.75%

Risk & Volatility

Flutter Entertainment has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Institutional and Insider Ownership

94.8% of Texas Roadhouse shares are owned by institutional investors. 0.1% of Flutter Entertainment shares are owned by company insiders. Comparatively, 0.5% of Texas Roadhouse shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Flutter Entertainment and Texas Roadhouse”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flutter Entertainment	$16.38 billion	0.81	-$310.00 million	($4.30)	-17.68
Texas Roadhouse	$5.88 billion	1.81	$405.55 million	$6.25	26.00

Texas Roadhouse has lower revenue, but higher earnings than Flutter Entertainment. Flutter Entertainment is trading at a lower price-to-earnings ratio than Texas Roadhouse, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Flutter Entertainment and Texas Roadhouse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flutter Entertainment	3	9	17	2	2.58
Texas Roadhouse	0	11	10	2	2.61

Flutter Entertainment presently has a consensus price target of $146.89, suggesting a potential upside of 93.27%. Texas Roadhouse has a consensus price target of $209.76, suggesting a potential upside of 29.10%. Given Flutter Entertainment’s higher possible upside, equities analysts plainly believe Flutter Entertainment is more favorable than Texas Roadhouse.

Summary

Texas Roadhouse beats Flutter Entertainment on 10 of the 14 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 Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.