DKNG vs MGM: DraftKings vs MGM Resorts — Which Gaming Stock Is Better?: AI Score, Valuation, Performance and Upside
DraftKings is a pure-play digital sports betting and iGaming company benefiting from US legalisation, while MGM Resorts is a diversified brick-and-mortar casino and hospitality giant with a digital gaming stake via BetMGM. The comparison is between online-only sports betting growth versus the full casino resort experience with digital as an adjacent channel.
Use this DKNG vs MGM comparison to choose your gaming stock. DraftKings is the online sports betting growth play without physical assets; MGM offers physical casino premium properties plus digital optionality via BetMGM at a more moderate valuation.
DKNG holds the edge across 3 of 5 key metrics in this comparison. MGM has delivered stronger 1-year price return (+48.52% vs -26.09%), though DKNG trades at the lower forward P/E (14.56x vs 19.53x). Analyst consensus implies meaningfully more upside for DKNG (+39.92%) than for MGM (+2.68%).
- →Want pure-play US online sports betting exposure as state-by-state legalisation continues
- →Believe DraftKings will achieve profitability as it scales in mature states
- →Are comfortable with ongoing customer acquisition spending while the market expands
- →See mobile-first digital gaming as the dominant long-term growth channel over physical casinos
- →Want irreplaceable Las Vegas Strip real estate alongside digital gaming exposure via BetMGM
- →Value MGM's diversified physical and online gaming exposure at a moderate multiple
- →Believe the Las Vegas convention and leisure market will remain resilient
- →Are comfortable with physical asset capital requirements in exchange for iconic premium property ownership
| Metric | DKNG | MGM |
|---|---|---|
| AI score | 38.4 | 36.7 |
| AI rank | #1284 | #1488 |
| Latest close | $24.93 | $47.51 |
| 1M return | +4.22% | +24.34% |
| 6M return | -29.16% | +34.25% |
| 1Y return | -26.09% | +48.52% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | DKNG | MGM |
|---|---|---|
| 1Y ago | $7.39K (-26.1%) started 2025-06-05 | $15.18K (+51.8%) started 2025-06-05 |
| 5Y ago | $4.66K (-53.4%) started 2021-06-07 | $10.96K (+9.6%) started 2021-06-07 |
| 10Y ago | $25.44K (+154.4%) started 2019-07-25 | $21.89K (+118.9%) started 2016-06-06 |
Hypothetical — past performance does not guarantee future results.
| Metric | DKNG | MGM |
|---|---|---|
| Market cap | $12.37B | $11.17B |
| Trailing P/E | 277.00 | 59.82 |
| Forward P/E | 14.56 | 19.53 |
| Price/Sales | 1.97 | N/A |
| EV/Revenue | 2.11 | 2.33 |
| Analyst target | $34.88 | $44.84 |
| Target upside | +39.92% | +2.68% |
| Metric | DKNG | MGM |
|---|---|---|
| Revenue growth | 16.80% | 4.20% |
| Earnings growth | N/A | -5.90% |
| EPS growth | N/A | -5.90% |
| FCF margin | +9.59% | +2.98% |
| Operating margin | N/A | 6.86% |
| Profit margin | 0.93% | 1.03% |
| ROIC proxy | 7.94% | 13.49% |
| Return on equity | 7.94% | 13.49% |
| Dividend yield | N/A | N/A |
| Beta | 1.65 | 1.28 |
| Debt/equity | 316.98 | 951.19 |
| Current ratio | 1.02 | 1.33 |
| Quick ratio | 0.70 | 1.10 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | DKNG | MGM |
|---|---|---|---|
| 1Y | Growth | -26.09% | +51.84% |
| CAGR | -26.10% | +51.93% | |
| Sharpe ratio | -0.50 | 1.12 | |
| Max drawdown | 57.04% | 22.76% | |
| Max daily drop | 13.51% | 6.90% | |
| Max wkly drop | 18.71% | 9.96% | |
| 5Y | Growth | -53.41% | +9.50% |
| CAGR | -14.18% | +1.83% | |
| Sharpe ratio | -0.02 | 0.13 | |
| Max drawdown | 83.87% | 49.33% | |
| Max daily drop | 27.82% | 13.22% | |
| Max wkly drop | 34.71% | 20.36% | |
| 10Y | Growth | +154.39% | +106.15% |
| CAGR | +14.57% | +7.50% | |
| Sharpe ratio | 0.46 | 0.29 | |
| Max drawdown | 85.73% | 80.42% | |
| Max daily drop | 27.82% | 33.61% | |
| Max wkly drop | 37.74% | 60.51% |
| Category | DKNG | MGM |
|---|---|---|
| Company | DraftKings Inc. | MGM Resorts International |
| Sector | Consumer Discretionary | Consumer Cyclical |
| Industry | N/A | N/A |
| Core business | US online sports betting and iGaming platform operating in states where both are legalised. Revenue from sportsbook handle and online casino gaming. Growing same-game parlay product and media content flywheel. | Global hospitality and entertainment company with iconic Las Vegas Strip properties (Bellagio, MGM Grand, Aria) alongside regional US casinos. Online gaming via BetMGM (50% stake with Entain) and MGM China. |
| Investor focus | Revenue growth as new states legalise sports betting, hold percentage improvement, customer acquisition cost efficiency, structural profitability in mature states, and path to GAAP profitability. | Las Vegas casino and hotel occupancy and RevPAR, BetMGM market share and profitability, MGM China recovery, and capital return via buybacks and dividends. |
- →Market share leader in US online sports betting alongside FanDuel — key beneficiary of state-by-state legalisation
- →Same-game parlay products driving higher-margin handle and better customer engagement
- →Mobile-native platform with a loyal daily fantasy sports heritage providing customer acquisition advantages
- →Iconic Las Vegas Strip properties provide irreplaceable real estate and brand premium pricing power
- →BetMGM gives MGM digital gaming exposure without full online-only risk
- →International diversification via MGM China and Macau gaming provides emerging market exposure
- →Not yet GAAP profitable — achieving profitability requires scaling in new states and reducing customer acquisition costs
- →Intensifying competition from FanDuel (Flutter), BetMGM, and ESPN Bet (Penn Entertainment)
- →Regulatory risk — states can change tax rates on gaming revenue, directly impacting margins
- →Las Vegas convention and group travel spending is sensitive to economic cycles
- →BetMGM is losing market share to FanDuel and DraftKings in online sports betting
- →High debt load from property ownership and development increases financial risk
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.