WallStSmart

Churchill Downs Incorporated (CHDN)vsDraftKings Inc (DKNG)

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Smart Verdict

WallStSmart Research — data-driven comparison

DraftKings Inc generates 107% more annual revenue ($6.05B vs $2.93B). CHDN leads profitability with a 13.1% profit margin vs 0.1%. DKNG appears more attractively valued with a PEG of 0.08. DKNG earns a higher WallStSmart Score of 62/100 (C+).

CHDN

Buy

55

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 7.3Quality: 3.5
Piotroski: 4/9Altman Z: 1.04

DKNG

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 4.0Value: 6.7Quality: 3.5
Piotroski: 5/9Altman Z: -0.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHDNSignificantly Overvalued (-163.5%)

Margin of Safety

-163.5%

Fair Value

$35.97

Current Price

$87.20

$51.23 premium

UndervaluedFair: $35.97Overvalued

Intrinsic value data unavailable for DKNG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHDN2 strengths · Avg: 9.0/10
Return on EquityProfitability
35.7%10/10

Every $100 of equity generates 36 in profit

P/E RatioValuation
16.3x8/10

Attractively priced relative to earnings

DKNG2 strengths · Avg: 10.0/10
PEG RatioValuation
0.0810/10

Growing faster than its price suggests

Revenue GrowthGrowth
42.8%10/10

Revenue surging 42.8% year-over-year

Areas to Watch

CHDN4 concerns · Avg: 2.3/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

EPS GrowthGrowth
-25.2%2/10

Earnings declined 25.2%

Altman Z-ScoreHealth
1.042/10

Distress zone — elevated risk

Debt/EquityHealth
4.931/10

Elevated debt levels

DKNG4 concerns · Avg: 3.5/10
Price/BookValuation
16.7x4/10

Trading at 16.7x book value

EPS GrowthGrowth
1.8%4/10

1.8% earnings growth

Return on EquityProfitability
0.4%3/10

ROE of 0.4% — below average capital efficiency

Profit MarginProfitability
0.1%3/10

0.1% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : CHDN

The strongest argument for CHDN centers on Return on Equity, P/E Ratio.

Bull Case : DKNG

The strongest argument for DKNG centers on PEG Ratio, Revenue Growth. Revenue growth of 42.8% demonstrates continued momentum. PEG of 0.08 suggests the stock is reasonably priced for its growth.

Bear Case : CHDN

The primary concerns for CHDN are PEG Ratio, EPS Growth, Altman Z-Score. Debt-to-equity of 4.93 is elevated, increasing financial risk.

Bear Case : DKNG

The primary concerns for DKNG are Price/Book, EPS Growth, Return on Equity. Debt-to-equity of 3.06 is elevated, increasing financial risk. Thin 0.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

CHDN profiles as a value stock while DKNG is a hypergrowth play — different risk/reward profiles.

DKNG carries more volatility with a beta of 1.68 — expect wider price swings.

DKNG is growing revenue faster at 42.8% — sustainability is the question.

DKNG generates stronger free cash flow (317M), providing more financial flexibility.

Bottom Line

DKNG scores higher overall (62/100 vs 55/100) and 42.8% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Churchill Downs Incorporated

CONSUMER CYCLICAL · GAMBLING · USA

Churchill Downs Incorporated is a gaming, online betting and racing entertainment company in the United States. The company is headquartered in Louisville, Kentucky.

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DraftKings Inc

CONSUMER CYCLICAL · GAMBLING · USA

DraftKings Inc. is a digital sports entertainment and games company in the United States. The company is headquartered in Boston, Massachusetts.

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