DraftKings vs Red Rock Resorts
Add, change or remove companies; up to four.
KIRAβs take AI analyst
I put DraftKings and Red Rock Resorts side by side, using each oneβs latest annual report. Here is what stands out:
- DraftKings is the larger business, with $6.1B of revenue in fiscal 2025 against $2.0B for Red Rock Resorts, about 3.0 times as much.
- DraftKings grew revenue faster (27.0%, against 3.7%).
- Red Rock Resorts kept more of each dollar of sales as operating profit (29.7% operating margin, against β0.3%).
- Red Rock Resorts turned more of its sales into free cash flow (14.4% FCF margin, against 10.7%).
- Red Rock Resorts earned a higher return on the capital invested in it (14.7%, against β0.7%).
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
DraftKings
DKNG
4/10
Revenue growth5-year growthPiotroski F-scoreNet debt / EBITDA
Red Rock Resorts
RRR
6/10
Operating marginNet marginFCF marginReturn on capitalReturn on equityShare count change
Side by side
Best in the row
| Latest fiscal year | DKNG FY25 | RRR FY25 |
|---|---|---|
| Size | ||
| Market cap | $10.5B | $3.0B |
| Revenue | $6.1B | $2.0B |
| Free cash flow | $648M | $291M |
| Net income | $3.7M | $188M |
| Growth | ||
| Revenue growth | 27.0% | 3.7% |
| 5-year growth | 58.0% | 11.2% |
| Share count change | 2.9% | β1.0% |
| Profitability | ||
| Gross margin | 41.3% | β |
| Operating margin | β0.3% | 29.7% |
| Net margin | 0.1% | 9.4% |
| FCF margin | 10.7% | 14.4% |
| Return on capital | β0.7% | 14.7% |
| Return on equity | 0.5% | 88.8% |
| Balance sheet | ||
| Net debt | $132M | $3.3B |
| Net debt / EBITDA | 0.5x | 4.1x |
| Dividends and buybacks | $572M | $200M |
| Valuation & quality | ||
| P/E | β | β |
| Piotroski F-score | 8 | 7 |
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.