Archon (OTCMKTS:ARHN – Get Rating) and Rush Street Interactive (NYSE:RSI – Get Rating) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Profitability
This table compares Archon and Rush Street Interactive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Archon | N/A | N/A | N/A |
| Rush Street Interactive | -5.03% | -23.64% | -14.23% |
Volatility & Risk
Archon has a beta of -0.11, indicating that its stock price is 111% less volatile than the S&P 500. Comparatively, Rush Street Interactive has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Archon | 0 | 0 | 0 | 0 | N/A |
| Rush Street Interactive | 0 | 1 | 5 | 0 | 2.83 |
Rush Street Interactive has a consensus target price of $7.03, indicating a potential upside of 125.36%. Given Rush Street Interactive’s higher probable upside, analysts clearly believe Rush Street Interactive is more favorable than Archon.
Institutional & Insider Ownership
35.8% of Rush Street Interactive shares are owned by institutional investors. 80.0% of Archon shares are owned by company insiders. Comparatively, 58.0% of Rush Street Interactive shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Archon and Rush Street Interactive’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Archon | N/A | N/A | N/A | N/A | N/A |
| Rush Street Interactive | $592.21 million | 1.16 | -$38.63 million | ($0.48) | -6.50 |
Archon has higher earnings, but lower revenue than Rush Street Interactive.
Summary
Rush Street Interactive beats Archon on 5 of the 9 factors compared between the two stocks.
About Archon
Archon Corp. engages in the operation of casinos and hotels. The firm is also involved in leasing commercial real estate properties. The company was founded in September 1993 and is headquartered in Laughlin, NV.
About Rush Street Interactive
Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States and Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers.com, PlaySugarHouse.com, and RushBet.co brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.
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