WallStSmart

DraftKings Inc (DKNG)vseBay Inc (EBAY)

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Smart Verdict

WallStSmart Research — data-driven comparison

eBay Inc generates 93% more annual revenue ($12.01B vs $6.22B). EBAY leads profitability with a 18.6% profit margin vs -2.7%. DKNG appears more attractively valued with a PEG of 0.06. EBAY earns a higher WallStSmart Score of 70/100 (B-).

DKNG

Hold

47

out of 100

Grade: D+

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

EBAY

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 8.5Value: 4.0Quality: 6.0
Piotroski: 4/9Altman Z: 4.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DKNGUndervalued (+60.4%)

Margin of Safety

+60.4%

Fair Value

$66.42

Current Price

$23.11

$43.31 discount

UndervaluedFair: $66.42Overvalued
EBAYSignificantly Overvalued (-26.5%)

Margin of Safety

-26.5%

Fair Value

$95.82

Current Price

$125.15

$29.33 premium

UndervaluedFair: $95.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

EBAY5 strengths · Avg: 9.4/10
Return on EquityProfitability
47.6%10/10

Every $100 of equity generates 48 in profit

EPS GrowthGrowth
55.0%10/10

Earnings expanding 55.0% YoY

Altman Z-ScoreHealth
4.4910/10

Safe zone — low bankruptcy risk

Market CapQuality
$52.52B9/10

Large-cap with strong market position

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

Areas to Watch

DKNG4 concerns · Avg: 2.0/10
Price/BookValuation
20.1x2/10

Trading at 20.1x 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

EBAY4 concerns · Avg: 3.8/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

P/E RatioValuation
25.8x4/10

Moderate valuation

Price/BookValuation
11.9x4/10

Trading at 11.9x book value

Debt/EquityHealth
1.533/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : EBAY

The strongest argument for EBAY centers on Return on Equity, EPS Growth, Altman Z-Score. Profitability is solid with margins at 18.6% and operating margin at 21.6%. Revenue growth of 14.8% demonstrates continued momentum.

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.

Bear Case : EBAY

The primary concerns for EBAY are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 1.53 is elevated, increasing financial risk.

Key Dynamics to Monitor

DKNG profiles as a turnaround stock while EBAY is a mature play — different risk/reward profiles.

DKNG carries more volatility with a beta of 1.61 — expect wider price swings.

EBAY is growing revenue faster at 14.8% — sustainability is the question.

EBAY generates stronger free cash flow (300M), providing more financial flexibility.

Bottom Line

EBAY scores higher overall (70/100 vs 47/100), backed by strong 18.6% margins and 14.8% revenue growth. DKNG offers better value entry with a 60.4% 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.

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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eBay Inc

CONSUMER CYCLICAL · INTERNET RETAIL · USA

eBay Inc. is an American multinational e-commerce corporation based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website.

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