Seek Returns logo

DKNG vs. LI: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at DKNG and LI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

DKNG is a standard domestic listing, while LI trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolDKNGLI
Company NameDraftKings Inc.Li Auto Inc.
CountryUnited StatesChina
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS IndustryHotels, Restaurants & LeisureAutomobiles
Market Capitalization21.43 billion USD25.20 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJuly 25, 2019July 30, 2020
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of DKNG and LI by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

DKNG vs. LI: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolDKNGLI
5-Day Price Return-4.51%0.73%
13-Week Price Return13.79%-13.87%
26-Week Price Return1.70%7.47%
52-Week Price Return44.59%142.14%
Month-to-Date Return-4.17%-6.41%
Year-to-Date Return16.02%3.41%
10-Day Avg. Volume11.46M24.98M
3-Month Avg. Volume10.23M17.25M
3-Month Volatility39.11%49.59%
Beta2.061.35

Profitability

Return on Equity (TTM)

DKNG

-30.68%

Hotels, Restaurants & Leisure Industry

Max
83.01%
Q3
39.51%
Median
17.38%
Q1
5.32%
Min
-45.92%

DKNG has a negative Return on Equity of -30.68%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

LI

11.89%

Automobiles Industry

Max
25.70%
Q3
12.88%
Median
6.92%
Q1
0.71%
Min
-15.89%

LI’s Return on Equity of 11.89% is on par with the norm for the Automobiles industry, indicating its profitability relative to shareholder equity is typical for the sector.

DKNG vs. LI: A comparison of their Return on Equity (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Net Profit Margin (TTM)

DKNG

-5.63%

Hotels, Restaurants & Leisure Industry

Max
26.45%
Q3
14.67%
Median
8.69%
Q1
3.34%
Min
-11.30%

DKNG has a negative Net Profit Margin of -5.63%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

LI

5.59%

Automobiles Industry

Max
9.92%
Q3
5.78%
Median
3.23%
Q1
0.11%
Min
-5.31%

LI’s Net Profit Margin of 5.59% is aligned with the median group of its peers in the Automobiles industry. This indicates its ability to convert revenue into profit is typical for the sector.

DKNG vs. LI: A comparison of their Net Profit Margin (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Operating Profit Margin (TTM)

DKNG

-6.16%

Hotels, Restaurants & Leisure Industry

Max
38.76%
Q3
21.15%
Median
14.20%
Q1
6.43%
Min
-14.56%

DKNG has a negative Operating Profit Margin of -6.16%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

LI

5.44%

Automobiles Industry

Max
13.07%
Q3
7.22%
Median
5.29%
Q1
0.43%
Min
-4.46%

LI’s Operating Profit Margin of 5.44% is around the midpoint for the Automobiles industry, indicating that its efficiency in managing core business operations is typical for the sector.

DKNG vs. LI: A comparison of their Operating Profit Margin (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Profitability at a Glance

SymbolDKNGLI
Return on Equity (TTM)-30.68%11.89%
Return on Assets (TTM)-6.94%5.18%
Net Profit Margin (TTM)-5.63%5.59%
Operating Profit Margin (TTM)-6.16%5.44%
Gross Profit Margin (TTM)39.45%20.51%

Financial Strength

Current Ratio (MRQ)

DKNG

1.34

Hotels, Restaurants & Leisure Industry

Max
2.68
Q3
1.62
Median
1.11
Q1
0.74
Min
0.19

DKNG’s Current Ratio of 1.34 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.

LI

1.87

Automobiles Industry

Max
2.19
Q3
1.54
Median
1.26
Q1
1.09
Min
0.48

LI’s Current Ratio of 1.87 is in the upper quartile for the Automobiles industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

DKNG vs. LI: A comparison of their Current Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Debt-to-Equity Ratio (MRQ)

DKNG

1.82

Hotels, Restaurants & Leisure Industry

Max
9.88
Q3
4.54
Median
1.52
Q1
0.27
Min
0.00

DKNG’s Debt-to-Equity Ratio of 1.82 is typical for the Hotels, Restaurants & Leisure industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

LI

0.13

Automobiles Industry

Max
2.34
Q3
1.13
Median
0.58
Q1
0.28
Min
0.06

Falling into the lower quartile for the Automobiles industry, LI’s Debt-to-Equity Ratio of 0.13 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

DKNG vs. LI: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Interest Coverage Ratio (TTM)

DKNG

-1,118.91

Hotels, Restaurants & Leisure Industry

Max
26.88
Q3
11.95
Median
3.87
Q1
1.19
Min
-11.84

DKNG has a negative Interest Coverage Ratio of -1,118.91. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

LI

-16.94

Automobiles Industry

Max
77.87
Q3
42.86
Median
13.88
Q1
2.13
Min
-49.07

LI has a negative Interest Coverage Ratio of -16.94. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

DKNG vs. LI: A comparison of their Interest Coverage Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Financial Strength at a Glance

SymbolDKNGLI
Current Ratio (MRQ)1.341.87
Quick Ratio (MRQ)1.271.64
Debt-to-Equity Ratio (MRQ)1.820.13
Interest Coverage Ratio (TTM)-1,118.91-16.94

Growth

Revenue Growth

DKNG vs. LI: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

DKNG vs. LI: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

DKNG

0.00%

Hotels, Restaurants & Leisure Industry

Max
5.88%
Q3
2.37%
Median
0.68%
Q1
0.00%
Min
0.00%

DKNG currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

LI

0.00%

Automobiles Industry

Max
10.71%
Q3
5.39%
Median
3.14%
Q1
0.00%
Min
0.00%

LI currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

DKNG vs. LI: A comparison of their Dividend Yield (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Dividend Payout Ratio (TTM)

DKNG

0.00%

Hotels, Restaurants & Leisure Industry

Max
127.31%
Q3
56.79%
Median
19.58%
Q1
0.00%
Min
0.00%

DKNG has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

LI

0.00%

Automobiles Industry

Max
114.43%
Q3
59.30%
Median
37.15%
Q1
16.40%
Min
0.00%

LI has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

DKNG vs. LI: A comparison of their Dividend Payout Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Dividend at a Glance

SymbolDKNGLI
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

DKNG

--

Hotels, Restaurants & Leisure Industry

Max
59.44
Q3
33.98
Median
22.25
Q1
15.53
Min
7.61

P/E Ratio data for DKNG is currently unavailable.

LI

21.30

Automobiles Industry

Max
27.69
Q3
19.99
Median
9.85
Q1
6.60
Min
4.25

A P/E Ratio of 21.30 places LI in the upper quartile for the Automobiles industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

DKNG vs. LI: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Price-to-Sales Ratio (TTM)

DKNG

3.96

Hotels, Restaurants & Leisure Industry

Max
7.74
Q3
3.88
Median
2.05
Q1
1.19
Min
0.17

DKNG’s P/S Ratio of 3.96 is in the upper echelon for the Hotels, Restaurants & Leisure industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

LI

1.19

Automobiles Industry

Max
1.52
Q3
0.84
Median
0.41
Q1
0.23
Min
0.08

LI’s P/S Ratio of 1.19 is in the upper echelon for the Automobiles industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

DKNG vs. LI: A comparison of their Price-to-Sales Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Price-to-Book Ratio (MRQ)

DKNG

21.08

Hotels, Restaurants & Leisure Industry

Max
20.90
Q3
9.78
Median
4.29
Q1
2.22
Min
0.47

At 21.08, DKNG’s P/B Ratio is at an extreme premium to the Hotels, Restaurants & Leisure industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

LI

2.70

Automobiles Industry

Max
4.25
Q3
2.00
Median
0.87
Q1
0.46
Min
0.19

LI’s P/B Ratio of 2.70 is in the upper tier for the Automobiles industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

DKNG vs. LI: A comparison of their Price-to-Book Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Valuation at a Glance

SymbolDKNGLI
Price-to-Earnings Ratio (TTM)--21.30
Price-to-Sales Ratio (TTM)3.961.19
Price-to-Book Ratio (MRQ)21.082.70
Price-to-Free Cash Flow Ratio (TTM)39.478.74