Head-To-Head Analysis: Roblox (NYSE:RBLX) vs. Flutter Entertainment (NYSE:FLUT)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Roblox and Flutter Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roblox	1	14	12	1	2.46
Flutter Entertainment	4	7	15	2	2.54

Roblox currently has a consensus target price of $87.07, suggesting a potential upside of 90.39%. Flutter Entertainment has a consensus target price of $189.26, suggesting a potential upside of 97.70%. Given Flutter Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Flutter Entertainment is more favorable than Roblox.

Insider & Institutional Ownership

94.5% of Roblox shares are owned by institutional investors. 10.1% of Roblox shares are owned by insiders. Comparatively, 0.1% of Flutter Entertainment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Roblox has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Flutter Entertainment has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roblox	-20.69%	-277.69%	-11.74%
Flutter Entertainment	-2.20%	11.60%	3.81%

Valuation & Earnings

This table compares Roblox 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
Roblox	$4.89 billion	6.28	-$1.07 billion	($1.58)	-28.95
Flutter Entertainment	$16.38 billion	1.02	-$310.00 million	($2.14)	-44.73

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

Summary

Flutter Entertainment beats Roblox on 10 of the 15 factors compared between the two stocks.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, 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.