DraftKings vs Penn Entertainment
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The short version
- Penn Entertainment is the larger business, with $7.0B of revenue in fiscal 2025 against $6.1B for DraftKings.
- DraftKings grew revenue faster (27.0%, against 5.8%).
- DraftKings kept more of each dollar of sales as operating profit (β0.3% operating margin, against β9.7%).
- DraftKings turned more of its sales into free cash flow (10.7% FCF margin, against β2.0%).
- DraftKings earned a higher return on the capital invested in it (β0.7%, against β8.1%).
| Latest fiscal year | DKNG Β· FY25 | PENN Β· FY25 |
|---|---|---|
| Size | ||
| Market cap | $10.4B | $2.0B |
| Revenue | $6.1B | $7.0B |
| Free cash flow | $648M | β$140M |
| Net income | $3.7M | β$843M |
| Growth | ||
| Revenue growth | 27.0% | 5.8% |
| 5-year growth | 58.0% | 14.2% |
| Share count change | 2.9% | β4.9% |
| Profitability | ||
| Gross margin | 41.3% | β |
| Operating margin | β0.3% | β9.7% |
| Net margin | 0.1% | β12.1% |
| FCF margin | 10.7% | β2.0% |
| Return on capital | β0.7% | β8.1% |
| Return on equity | 0.5% | β35.9% |
| Balance sheet | ||
| Net debt | $132M | $4.3B |
| Net debt / EBITDA | 0.5x | β |
| Dividends and buybacks | $572M | $354M |
| Valuation & quality | ||
| P/E | β | β |
| Piotroski F-score | 8 | 4 |
Revenue
FY16
DKNG β
PENN $3.0B
FY17
DKNG β
PENN $3.1B
FY18
DKNG $226M
PENN $3.6B
FY19
DKNG $323M
PENN $5.3B
FY20
DKNG $615M
PENN $3.6B
FY21
DKNG $1.3B
PENN $5.9B
FY22
DKNG $2.2B
PENN $6.4B
FY23
DKNG $3.7B
PENN $6.4B
FY24
DKNG $4.8B
PENN $6.6B
FY25
DKNG $6.1B
PENN $7.0B
DKNG
PENN
Operating margin
FY16
DKNG β
PENN 17.9%
FY17
DKNG β
PENN 14.2%
FY18
DKNG β33.9%
PENN 17.7%
FY19
DKNG β45.3%
PENN 10.8%
FY20
DKNG β137.2%
PENN β11.5%
FY21
DKNG β120.5%
PENN 17.9%
FY22
DKNG β67.5%
PENN 15.2%
FY23
DKNG β21.5%
PENN β10.9%
FY24
DKNG β12.8%
PENN 1.1%
FY25
DKNG β0.3%
PENN β9.7%
DKNG
PENN
Free cash flow
FY16
DKNG β
PENN $311M
FY17
DKNG β
PENN $379M
FY18
DKNG β$59.3M
PENN $260M
FY19
DKNG β$63.3M
PENN $513M
FY20
DKNG β$206M
PENN $202M
FY21
DKNG β$435M
PENN $652M
FY22
DKNG β$658M
PENN $615M
FY23
DKNG β$22.7M
PENN $95.9M
FY24
DKNG $408M
PENN β$123M
FY25
DKNG $648M
PENN β$140M
DKNG
PENN
Return on capital
FY16
DKNG β
PENN 67.3%
FY17
DKNG β
PENN 44.8%
FY18
DKNG β
PENN 34.9%
FY19
DKNG β
PENN 8.5%
FY20
DKNG β176.2%
PENN β8.6%
FY21
DKNG β155.4%
PENN 18.7%
FY22
DKNG β117.2%
PENN 12.8%
FY23
DKNG β59.7%
PENN β6.5%
FY24
DKNG β41.8%
PENN 0.8%
FY25
DKNG β0.7%
PENN β8.1%
DKNG
PENN
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.