Contrasting HUYA (NYSE:HUYA) & Flutter Entertainment (NYSE:FLUT)

HUYA (NYSE:HUYA) and Flutter Entertainment (NYSE:FLUT) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HUYA	-2.51%	0.30%	0.23%
Flutter Entertainment	-6.86%	-4.52%	-1.85%

Valuation and Earnings

This table compares HUYA and Flutter Entertainment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HUYA	$6.08 billion	0.12	-$28.81 million	($0.03)	-110.83
Flutter Entertainment	$14.05 billion	2.88	-$1.22 billion	$0.22	1,036.86

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for HUYA and Flutter Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HUYA	0	6	2	0	2.25
Flutter Entertainment	0	0	20	1	3.05

HUYA currently has a consensus target price of $5.68, indicating a potential upside of 70.68%. Flutter Entertainment has a consensus target price of $312.06, indicating a potential upside of 36.80%. Given HUYA’s higher probable upside, equities research analysts plainly believe HUYA is more favorable than Flutter Entertainment.

Insider and Institutional Ownership

23.2% of HUYA shares are held by institutional investors. 1.2% of HUYA shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

About HUYA

HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.

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.