Critical Contrast: Flutter Entertainment (NYSE:FLUT) versus DoorDash (NASDAQ:DASH)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DoorDash	5.29%	8.48%	4.37%
Flutter Entertainment	-4.39%	7.27%	2.33%

Volatility and Risk

DoorDash has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Flutter Entertainment has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Institutional and Insider Ownership

90.6% of DoorDash shares are held by institutional investors. 44.9% of DoorDash shares are held by company insiders. Comparatively, 0.1% of Flutter Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares DoorDash and Flutter Entertainment”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoorDash	$13.72 billion	6.39	$935.00 million	$1.91	105.93
Flutter Entertainment	$16.38 billion	1.06	-$310.00 million	($4.30)	-23.21

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

Analyst Recommendations

This is a summary of current recommendations for DoorDash and Flutter Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoorDash	1	8	25	1	2.74
Flutter Entertainment	3	8	17	2	2.60

DoorDash presently has a consensus target price of $256.97, suggesting a potential upside of 27.01%. Flutter Entertainment has a consensus target price of $156.88, suggesting a potential upside of 57.22%. Given Flutter Entertainment’s higher probable upside, analysts clearly believe Flutter Entertainment is more favorable than DoorDash.

Summary

DoorDash beats Flutter Entertainment on 12 of the 15 factors compared between the two stocks.

About DoorDash

DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers membership products, including DashPass and Wolt+; DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their channels to fulfill demand using its platform; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels. In addition, the company enables merchants to advertise and promote on its platform to acquire consumers. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.

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.