DraftKings vs Penn Entertainment
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KIRA’s take AI analyst
I put DraftKings and Penn Entertainment side by side, using each one’s latest annual report. Here is what stands out:
- 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 (−0.3% operating margin, against −9.7%).
- DraftKings turned more of its sales into free cash flow (10.7% FCF margin, against −2.0%).
- DraftKings earned a higher return on the capital invested in it (−0.7%, against −8.1%).
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
DraftKings
DKNG
8/9
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-score
Penn Entertainment
PENN
1/9
Share count change
Side by side
Best in the row
| Latest fiscal year | DKNG FY25 | PENN FY25 |
|---|---|---|
| Size | ||
| Market cap | $10.5B | $2.0B |
| Revenue | $6.1B | $7.0B |
| Free cash flow | $648M | −$140M |
| Net income | $3.7M | −$843M |
| Growth | ||
| Revenue growth | 27.0% | 5.8% |
| 5-year growth | 58.0% | 14.2% |
| Share count change | 2.9% | −4.9% |
| Profitability | ||
| Gross margin | 41.3% | — |
| Operating margin | −0.3% | −9.7% |
| Net margin | 0.1% | −12.1% |
| FCF margin | 10.7% | −2.0% |
| Return on capital | −0.7% | −8.1% |
| Return on equity | 0.5% | −35.9% |
| Balance sheet | ||
| Net debt | $132M | $4.3B |
| Net debt / EBITDA | 0.5x | — |
| Dividends and buybacks | $572M | $354M |
| Valuation & quality | ||
| P/E | — | — |
| Piotroski F-score | 8 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.