DKNG vs CZR Stock Comparison: AI Score, Valuation, Performance and Upside
DraftKings and Caesars are both sports betting companies but with very different business models. DraftKings is a pure-play digital betting company with no physical casino properties. Caesars is a casino resort operator with a sports betting app as one component of a diversified gaming entertainment business. Both are investing in online sports betting; Caesars has the loyalty program and casino cash flow advantage; DraftKings has the pure-play digital focus.
DKNG vs CZR is pure-play online sports betting and iGaming growth investing (DraftKings) versus a diversified casino resort operator adding digital sports betting leveraging its massive loyalty program (Caesars) — DraftKings offers digital sports betting focus; Caesars offers diversified gaming with physical casino stability and loyalty program cross-sell.
DKNG holds the edge across 3 of 5 key metrics in this comparison. CZR has delivered stronger 1-year price return (+12.27% vs -49.77%), though DKNG has the better forward P/E setup (14.87x vs 41.10x for CZR). CZR leads on both revenue growth (3.00%) and operating margin (17.67%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for DKNG (+43.84%) than for CZR (+5.17%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- prefer pure-play online sports betting exposure without legacy casino property overhead and debt
- value DraftKings' digital-first approach enabling rapid state-by-state expansion without physical infrastructure investment
- want sports betting market growth exposure in the player most focused on winning online market share vs physical casino incumbents
- are comfortable with ongoing losses from promotional spending, FanDuel's market share lead, and the lumpy state-by-state expansion cadence
- prefer diversified gaming entertainment with Las Vegas Strip hotels, regional casinos, and digital sports betting in a combined portfolio
- value Caesars Rewards' 90M+ member loyalty program as a structural advantage for cross-selling online sports betting to existing casino customers
- want gaming sector exposure with physical casino cash flow providing earnings stability during digital betting investment periods
- are comfortable with $12B+ in merger debt, Caesars Sportsbook's reduced digital marketing investment pace, and Las Vegas/regional gaming cycle exposure
| Metric | DKNG | CZR |
|---|---|---|
| AI scorei | 41.1 | 39.1 |
| AI ranki | #1080 | #1292 |
| Latest closei | $21.75 | $29.64 |
| 1M returni | -14.07% | +0.17% |
| 6M returni | -12.69% | +8.02% |
| 1Y returni | -49.77% | +12.27% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | DKNG | CZR |
|---|---|---|
| 1Y ago | $5.02K (-49.8%) started 2025-09-18 | $11.23K (+12.3%) started 2025-09-18 |
| 5Y ago | $3.82K (-61.8%) started 2021-09-20 | $2.83K (-71.7%) started 2021-09-20 |
| 10Y ago | $22.19K (+121.9%) started 2019-07-25 | $21.42K (+114.2%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | DKNG | CZR |
|---|---|---|
| Market capi | $12.12B | $6.06B |
| Trailing P/Ei | N/A | N/A |
| Forward P/Ei | 14.87 | 41.10 |
| Price/Salesi | N/A | N/A |
| EV/Revenuei | 2.02 | 2.68 |
| Analyst targeti | $35.12 | $31.27 |
| Target upsidei | +43.84% | +5.17% |
| Metric | DKNG | CZR |
|---|---|---|
| Revenue growthi | -4.60% | 3.00% |
| Earnings growthi | N/A | N/A |
| EPS growthi | N/A | N/A |
| FCF margini | +7.42% | +6.55% |
| Operating margini | -4.72% | 17.67% |
| Profit margini | -2.68% | -3.99% |
| ROIC proxyi | -21.14% | -10.38% |
| Return on equityi | -21.14% | -10.38% |
| Dividend yieldi | N/A | N/A |
| Payout ratioi | 0.00% | 0.00% |
| Dividend growth streaki | N/A | N/A |
| Betai | 1.63 | 1.75 |
| Debt/equityi | 336.48 | 729.87 |
| Current ratioi | 1.02 | 0.85 |
| Quick ratioi | 0.69 | 0.62 |
Over the past year, DKNG and CZR have moved weakly in the same direction (correlation of 0.32), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | DKNG | CZR |
|---|---|---|---|
| 1Y | Growthi | -49.77% | +12.27% |
| CAGRi | -49.79% | +12.28% | |
| Volatilityi | 53.04% | 46.90% | |
| Sharpe ratioi | -1.12 | 0.38 | |
| Sortino ratioi | -1.47 | 0.60 | |
| Max drawdowni | 52.74% | 34.91% | |
| Current drawdowni | 50.39% | 2.53% | |
| Avg drawdowni | 36.22% | 10.07% | |
| Ulcer Indexi | 38.10% | 13.87% | |
| Max daily dropi | 13.51% | 15.23% | |
| Max wkly dropi | 18.71% | 19.84% | |
| 5Y | Growthi | -61.84% | -71.70% |
| CAGRi | -17.55% | -22.33% | |
| Volatilityi | 61.81% | 51.71% | |
| Sharpe ratioi | -0.07 | -0.32 | |
| Sortino ratioi | -0.10 | -0.47 | |
| Max drawdowni | 81.98% | 84.82% | |
| Current drawdowni | 61.84% | 75.19% | |
| Avg drawdowni | 47.41% | 63.20% | |
| Ulcer Indexi | 50.87% | 65.44% | |
| Max daily dropi | 27.82% | 15.23% | |
| Max wkly dropi | 34.71% | 27.27% | |
| 10Y | Growthi | +121.94% | +114.16% |
| CAGRi | +11.79% | +7.92% | |
| Volatilityi | 62.49% | 60.75% | |
| Sharpe ratioi | 0.42 | 0.36 | |
| Sortino ratioi | 0.62 | 0.52 | |
| Max drawdowni | 85.73% | 89.78% | |
| Current drawdowni | 69.78% | 75.19% | |
| Avg drawdowni | 44.99% | 38.06% | |
| Ulcer Indexi | 51.34% | 48.72% | |
| Max daily dropi | 27.82% | 37.51% | |
| Max wkly dropi | 37.74% | 71.34% |
| Category | DKNG | CZR |
|---|---|---|
| Company | DraftKings Inc. | Caesars Entertainment, Inc. |
| Sector | Consumer Cyclical | Consumer Cyclical |
| Industry | Gambling | Resorts & Casinos |
| Core business | DraftKings is a digital sports betting and iGaming company operating in 25+ US states and select international markets. It offers sports betting (DraftKings Sportsbook), daily fantasy sports, iGaming (online casino), and marketplace betting. DraftKings went public via SPAC in 2020 and has been investing heavily in customer acquisition and state market entry. The company is pursuing path to profitability after years of heavy promotional spending to capture sports betting market share. | Caesars Entertainment is one of the largest casino resort operators in the US with 50+ properties under Caesars, Harrah's, Horseshoe, and other brands. Caesars also operates the Caesars Sportsbook (online and retail sports betting) and iGaming platform. Unlike DraftKings, Caesars combines physical casino revenue with online sports betting, using its Caesars Rewards loyalty program (90M+ members) to cross-market online betting to existing casino customers. Caesars carries significant debt from its 2020 Eldorado Resorts acquisition. |
| Investor focus | Investors track revenue growth, monthly unique payers, hold rate (profit margin on bets placed), and the quarterly progress toward adjusted EBITDA profitability. | Investors track same-store casino revenue (Las Vegas and regional), Caesars Sportsbook online revenue vs marketing spend, debt reduction trajectory, and free cash flow from the casino asset base. |
- Pure-play online sports betting exposure without casino property overhead — DraftKings can enter new states without physical infrastructure costs
- Brand recognition from daily fantasy sports history provides customer familiarity advantages in new sports betting markets
- iGaming expansion (online casino games) is higher-margin than sports betting and expanding in states legalizing both
- 90M+ member loyalty program provides a massive pre-existing customer base for converting casino players to online sports betting users
- Physical casino properties generate substantial consistent cash flow from gaming, hotel, food, and entertainment — funding online betting investment
- Las Vegas Strip exposure benefits from the structural shift of Las Vegas from gambling destination to entertainment and convention destination
- Heavy promotional spending to acquire bettors has prevented profitability — DraftKings spends heavily on bonuses and free bets to win first-time bettors from competitors
- FanDuel (Flutter Entertainment) has taken market share lead in US sports betting — DraftKings is the #2 player in a duopoly market
- State-by-state regulatory expansion creates lumpy revenue as each new state requires significant upfront customer acquisition investment
- $12B+ in debt from the Eldorado/Caesars merger is a significant constraint on operational and strategic flexibility
- Caesars Sportsbook has been reducing digital marketing investment — scaling back from the intense promotional spending that drove initial user acquisition in online sports betting
- Regional casino markets face competition from tribal casinos, neighboring state legalization, and potential online expansion in additional states
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