WallStSmart

Churchill Downs Incorporated (CHDN)vsDraftKings Inc (DKNG)

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Smart Verdict

WallStSmart Research — data-driven comparison

DraftKings Inc generates 108% more annual revenue ($6.22B vs $2.99B). CHDN leads profitability with a 13.8% profit margin vs -2.7%. DKNG appears more attractively valued with a PEG of 0.06. CHDN earns a higher WallStSmart Score of 65/100 (B-).

CHDN

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 8.0Value: 7.3Quality: 3.5
Piotroski: 4/9Altman Z: 1.00

DKNG

Hold

47

out of 100

Grade: D+

Growth: 7.3Profit: 2.0Value: 8.3Quality: 3.5
Piotroski: 5/9Altman Z: -0.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHDNUndervalued (+71.2%)

Margin of Safety

+71.2%

Fair Value

$329.48

Current Price

$83.86

$245.62 discount

UndervaluedFair: $329.48Overvalued
DKNGUndervalued (+61.4%)

Margin of Safety

+61.4%

Fair Value

$68.19

Current Price

$24.74

$43.45 discount

UndervaluedFair: $68.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHDN3 strengths · Avg: 9.3/10
Return on EquityProfitability
35.2%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
36.5%10/10

Strong operational efficiency at 36.5%

P/E RatioValuation
14.6x8/10

Attractively priced relative to earnings

DKNG2 strengths · Avg: 10.0/10
PEG RatioValuation
0.0610/10

Growing faster than its price suggests

EPS GrowthGrowth
184.6%10/10

Earnings expanding 184.6% YoY

Areas to Watch

CHDN4 concerns · Avg: 2.8/10
PEG RatioValuation
1.694/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Altman Z-ScoreHealth
1.002/10

Distress zone — elevated risk

Debt/EquityHealth
3.571/10

Elevated debt levels

DKNG4 concerns · Avg: 2.0/10
Price/BookValuation
21.5x2/10

Trading at 21.5x book value

Return on EquityProfitability
-29.3%2/10

ROE of -29.3% — below average capital efficiency

Revenue GrowthGrowth
-4.6%2/10

Revenue declined 4.6%

Altman Z-ScoreHealth
-0.522/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CHDN

The strongest argument for CHDN centers on Return on Equity, Operating Margin, P/E Ratio.

Bull Case : DKNG

The strongest argument for DKNG centers on PEG Ratio, EPS Growth. PEG of 0.06 suggests the stock is reasonably priced for its growth.

Bear Case : CHDN

The primary concerns for CHDN are PEG Ratio, Revenue Growth, Altman Z-Score. Debt-to-equity of 3.57 is elevated, increasing financial risk.

Bear Case : DKNG

The primary concerns for DKNG are Price/Book, Return on Equity, Revenue Growth. Debt-to-equity of 3.36 is elevated, increasing financial risk.

Key Dynamics to Monitor

CHDN profiles as a value stock while DKNG is a turnaround play — different risk/reward profiles.

DKNG carries more volatility with a beta of 1.63 — expect wider price swings.

CHDN is growing revenue faster at 4.9% — sustainability is the question.

CHDN generates stronger free cash flow (159M), providing more financial flexibility.

Bottom Line

CHDN scores higher overall (65/100 vs 47/100). DKNG offers better value entry with a 61.4% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Churchill Downs Incorporated

CONSUMER CYCLICAL · GAMBLING · USA

Churchill Downs Incorporated is a gaming, online betting and racing entertainment company in the United States. The company is headquartered in Louisville, Kentucky.

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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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