WallStSmart

DraftKings Inc (DKNG)vsSea Ltd (SE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sea Ltd generates 300% more annual revenue ($25.19B vs $6.29B). SE leads profitability with a 6.4% profit margin vs 0.9%. DKNG appears more attractively valued with a PEG of 0.11. SE earns a higher WallStSmart Score of 58/100 (C).

DKNG

Buy

56

out of 100

Grade: C

Growth: 9.3Profit: 4.5Value: 7.3Quality: 3.5
Piotroski: 5/9Altman Z: -0.55

SE

Buy

58

out of 100

Grade: C

Growth: 8.0Profit: 5.5Value: 6.7Quality: 7.3
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DKNGUndervalued (+63.6%)

Margin of Safety

+63.6%

Fair Value

$72.24

Current Price

$24.93

$47.31 discount

UndervaluedFair: $72.24Overvalued
SEUndervalued (+53.1%)

Margin of Safety

+53.1%

Fair Value

$243.96

Current Price

$86.56

$157.40 discount

UndervaluedFair: $243.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DKNG3 strengths · Avg: 9.3/10
PEG RatioValuation
0.1110/10

Growing faster than its price suggests

EPS GrowthGrowth
184.6%10/10

Earnings expanding 184.6% YoY

Revenue GrowthGrowth
16.8%8/10

16.8% revenue growth

SE3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
46.6%10/10

Revenue surging 46.6% year-over-year

Market CapQuality
$57.05B9/10

Large-cap with strong market position

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Areas to Watch

DKNG4 concerns · Avg: 2.5/10
Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Operating MarginProfitability
0.3%3/10

Operating margin of 0.3%

P/E RatioValuation
322.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
20.4x2/10

Trading at 20.4x book value

SE4 concerns · Avg: 3.3/10
P/E RatioValuation
36.7x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
3.1%4/10

3.1% earnings growth

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

Free Cash FlowQuality
$02/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : DKNG

The strongest argument for DKNG centers on PEG Ratio, EPS Growth, Revenue Growth. Revenue growth of 16.8% demonstrates continued momentum. PEG of 0.11 suggests the stock is reasonably priced for its growth.

Bull Case : SE

The strongest argument for SE centers on Revenue Growth, Market Cap, Debt/Equity. Revenue growth of 46.6% demonstrates continued momentum. PEG of 1.36 suggests the stock is reasonably priced for its growth.

Bear Case : DKNG

The primary concerns for DKNG are Profit Margin, Operating Margin, P/E Ratio. A P/E of 322.2x leaves little room for execution misses. Debt-to-equity of 2.22 is elevated, increasing financial risk.

Bear Case : SE

The primary concerns for SE are P/E Ratio, EPS Growth, Profit Margin.

Key Dynamics to Monitor

DKNG profiles as a growth stock while SE is a hypergrowth play — different risk/reward profiles.

DKNG carries more volatility with a beta of 1.65 — expect wider price swings.

SE is growing revenue faster at 46.6% — sustainability is the question.

Monitor GAMBLING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SE scores higher overall (58/100 vs 56/100) and 46.6% revenue growth. DKNG offers better value entry with a 63.6% margin of safety. 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.

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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Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

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