Critical Analysis of Flutter Entertainment (FLUT) Compared to Its Competitors

Flutter Entertainment (NYSE:FLUT) is a notable player among 120 publicly-traded companies in the "Computer programming, data processing, & other computer related" sector. This analysis aims to evaluate Flutter Entertainment's standing against its competitors based on several key factors including analyst recommendations, profitability, valuation, earnings, institutional ownership, risk, and dividends.

Analyst Recommendations

Recent evaluations for Flutter Entertainment and its competitors, as documented by MarketBeat.com, shed light on their potential investment viability.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flutter Entertainment	0	0	19	1	3.05
Competitors	1275	5084	11290	340	2.59

Currently, Flutter Entertainment holds a consensus price target of $311.41, representing a potential upside of 36.37%. In contrast, companies in the same sector have an average potential upside of 33.10%. This stronger consensus rating and anticipated growth suggest that analysts view Flutter Entertainment more favorably compared to its peers.

Profitability

The following table outlines the net margins, return on equity, and return on assets for Flutter Entertainment versus its competitors.

	Net Margins	Return on Equity	Return on Assets
Flutter Entertainment	-6.86%	-4.52%	-1.85%
Competitors	-138.86%	-18.64%	-3.29%

Flutter Entertainment demonstrates better profitability metrics, with smaller negative margins and returns compared to its competitors, which indicates relatively better financial health.

Valuation & Earnings

The table below provides a comparison of gross revenue, net income, and the price-to-earnings ratio between Flutter Entertainment and its competitors.

	Gross Revenue	Net Income	Price/Earnings Ratio
Flutter Entertainment	$14.05 billion	-$1.22 billion	1,037.97
Competitors	$11.35 billion	$2.53 billion	-35,695.14

While Flutter Entertainment leads in revenue, it has reported a net loss, resulting in a much higher price-to-earnings ratio compared to its industry rivals, indicating its shares may be seen as overvalued at present.

Insider & Institutional Ownership

Institutional investors hold approximately 48.9% of shares in companies across the "Computer programming, data processing, & other computer related" sector, while insiders own about 16.9% of shares. High institutional ownership often signifies confidence from significant investors regarding a company’s long-term growth potential.

Conclusion

Overall, Flutter Entertainment outperforms its competitors in 9 out of the 12 evaluated metrics, showcasing its strengths in several critical areas.

Company Overview

Flutter Entertainment plc is a global sports betting and gaming entity, operating across various markets including the United Kingdom, Ireland, Australia, the United States, Italy, and beyond. The company divides its operations into four main segments: UK & Ireland, Australia, International, and US. Flutter offers a range of betting and gaming services through various platforms like Paddy Power, Betfair, and FanDuel. Originally known as Paddy Power Betfair, it rebranded to Flutter Entertainment in 2019. Founded in 1958 and based in Dublin, Ireland, Flutter continues to expand its presence in the competitive sports betting and gaming landscape.

Flutter, Entertainment, Comparison