Head-To-Head Review: Flutter Entertainment (NYSE:FLUT) and Simplicity Esports and Gaming (OTCMKTS:WINR)

Simplicity Esports and Gaming (OTCMKTS:WINR) and Flutter Entertainment (NYSE:FLUT) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Simplicity Esports and Gaming and Flutter Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simplicity Esports and Gaming	0	0	0	0	0.00
Flutter Entertainment	1	4	17	3	2.88

Flutter Entertainment has a consensus price target of $303.70, suggesting a potential upside of 36.77%. Given Flutter Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe Flutter Entertainment is more favorable than Simplicity Esports and Gaming.

Profitability

This table compares Simplicity Esports and Gaming and Flutter Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simplicity Esports and Gaming	N/A	N/A	N/A
Flutter Entertainment	-0.95%	14.42%	5.23%

Valuation and Earnings

This table compares Simplicity Esports and Gaming and Flutter Entertainment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simplicity Esports and Gaming	N/A	N/A	N/A	($0.04)	N/A
Flutter Entertainment	$15.44 billion	2.52	$43.00 million	($1.30)	-170.81

Flutter Entertainment has higher revenue and earnings than Simplicity Esports and Gaming. Flutter Entertainment is trading at a lower price-to-earnings ratio than Simplicity Esports and Gaming, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Simplicity Esports and Gaming has a beta of -0.88, suggesting that its share price is 188% less volatile than the S&P 500. Comparatively, Flutter Entertainment has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.

Summary

Flutter Entertainment beats Simplicity Esports and Gaming on 8 of the 10 factors compared between the two stocks.

About Simplicity Esports and Gaming

Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.

About Flutter Entertainment

Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting. In addition, it provides online poker, casino, and rummy. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, sisal.com, and maxbet.rs websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. Flutter Entertainment plc was incorporated in 1958 and is headquartered in Dublin, Ireland.