Flutter Entertainment (NYSE:FLUT – Get Free Report) and Ark Restaurants (NASDAQ:ARKR – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Profitability
This table compares Flutter Entertainment and Ark Restaurants’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flutter Entertainment | -4.39% | 7.27% | 2.33% |
| Ark Restaurants | -2.04% | -10.61% | -2.58% |
Insider and Institutional Ownership
32.0% of Ark Restaurants shares are owned by institutional investors. 0.1% of Flutter Entertainment shares are owned by insiders. Comparatively, 37.5% of Ark Restaurants shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Flutter Entertainment and Ark Restaurants”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flutter Entertainment | $16.38 billion | 0.80 | -$310.00 million | ($4.30) | -17.57 |
| Ark Restaurants | $165.75 million | 0.10 | -$11.47 million | ($0.88) | -4.97 |
Ark Restaurants has lower revenue, but higher earnings than Flutter Entertainment. Flutter Entertainment is trading at a lower price-to-earnings ratio than Ark Restaurants, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Flutter Entertainment has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Ark Restaurants has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Flutter Entertainment and Ark Restaurants, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flutter Entertainment | 3 | 9 | 17 | 2 | 2.58 |
| Ark Restaurants | 1 | 0 | 0 | 0 | 1.00 |
Flutter Entertainment currently has a consensus target price of $143.59, indicating a potential upside of 90.01%. Given Flutter Entertainment’s stronger consensus rating and higher possible upside, equities analysts clearly believe Flutter Entertainment is more favorable than Ark Restaurants.
Summary
Flutter Entertainment beats Ark Restaurants on 9 of the 15 factors compared between the two stocks.
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.
About Ark Restaurants
Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. It operates restaurants in New York City; Washington, D.C.; Las Vegas, Nevada; Atlantic City, New Jersey; Florida; and Alabama, as well as fast food concepts and catering operations. The company was incorporated in 1983 and is based in New York, New York.
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