CHDN vs DKNG: How Churchill Downs Incorporated and DraftKings Compare (2026)
Last updated July 2026
Short answer
DKNG is the larger of the two ($12.09B market cap): the incumbent the market prices for continued execution (14.31x forward earnings, beta 1.64). CHDN is the smaller challenger ($6.23B), cheaper on forward earnings (12.27x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
CHDN vs DKNG: the tie-breaker metrics
Same yardstick, side by side (as of July 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | CHDN | DKNG | What it tells you |
|---|---|---|---|
| Market cap | $6.23B | $12.09B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 12.27 | 14.31 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 16.45 | 270.67 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.67 | 1.64 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 24% of range | 14% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 5.68 | 19.97 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: CHDN is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how CHDN and DKNG affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. CHDN and DKNG share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined CHDN and DKNG exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Churchill Downs Incorporated (CHDN) do?
Churchill Downs Incorporated operates through three reportable segments: Live and Historical Racing (the Churchill Downs Racetrack that hosts the Kentucky Derby plus Derby City Gaming and a growing fleet of historical racing machine, or HRM, venues in Kentucky and Virginia), Wagering Services and Solutions (the TwinSpires online horse-race wagering platform, the Exacta HRM technology business, and United Tote), and Gaming (regional casino and racetrack properties). The Kentucky Derby remains the crown jewel, generating record luxury ticket sales and TV audiences, while HRM parlors have become the primary growth engine as new venues open across Kentucky and Virginia.
What does DraftKings (DKNG) do?
DraftKings operates one of the largest US online sports betting (OSB) and iGaming platforms, alongside a daily fantasy sports business, a former retail-lottery courier operation, and a growing prediction-markets product (Pick6). Revenue comes primarily from the Sportsbook (hold on wagering handle) and iGaming (online casino), with the company live in dozens of US states plus Ontario. It sits in a consolidated duopoly with FanDuel (Flutter), with the two names controlling roughly three-quarters or more of US gross gaming revenue.
CHDN vs DKNG: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- CHDN drivers: Historical racing machine expansion; Kentucky Derby franchise and pricing power.
- DKNG drivers: Duopoly scale and structural profitability; New-state and iGaming expansion.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Churchill Downs carries substantial leverage, with net debt of roughly $4.9 billion and a debt-to-equity ratio well above peers, which magnifies both returns and downside as interest costs and maturities in 2027 and 2028 come due. For DKNG, valuation is the central risk: the stock trades at a very high multiple of trailing GAAP earnings (which remain minimal), so disappointment on margin or growth can drive sharp drawdowns.
CHDN or DKNG: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick CHDN if you believe its drivers more; DKNG if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the CHDN and DKNG guides.
CHDN vs DKNG: the full fundamentals
CHDN. Churchill Downs trades at a mid-teens earnings multiple after record Q1 2026 revenue of about $663 million and adjusted EBITDA near $257 million, with diluted EPS of $1.16. The valuation reflects steady growth alongside heavy leverage (net debt around $4.9 billion), so much of the equity story hinges on HRM expansion continuing to compound EBITDA faster than interest costs rise.
DKNG. DraftKings is valued on scale and future profitability rather than current earnings, so its trailing P/E is extreme and near-meaningless. The more relevant frame is revenue growth (mid-teens percent) converting into a rising adjusted EBITDA margin as states mature. Guidance and quarterly hold percentages tend to move the stock more than reported net income.
Headline figures (approximate, July 2026): CHDN shows revenue (ttm) ~$2.9B, fy2025 net income ~$383M, q1 2026 revenue ~$663M (record), q1 2026 adjusted ebitda ~$257M (record); DKNG shows revenue (ttm) ~$6.0-6.3B, q1 2026 revenue ~$1.65B (up ~17% YoY), fy2026 revenue guidance ~$6.5-6.9B, fy2026 adj. ebitda guidance ~$700-900M.
The bottom line: CHDN vs DKNG
CHDN and DKNG are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined CHDN and DKNG exposure against your real portfolio. It is not an investment adviser.
Investing in Churchill Downs Incorporated with AI
Connect the broker you already use and ask Walnut's AI how CHDN fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between CHDN and DKNG?
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Churchill Downs Incorporated operates through three reportable segments: Live and Historical Racing (the Churchill Downs Racetrack that hosts the Kentucky Derby plus Derby City Gaming and a growing fleet of historical racing machine, or HRM, venues in Kentucky and Virginia), Wagering Services and Solutions (the TwinSpires online horse-race wagering platform, the Exacta HRM technology business, and United Tote), and Gaming (regional casino and racetrack properties). DraftKings operates one of the largest US online sports betting (OSB) and iGaming platforms, alongside a daily fantasy sports business, a former retail-lottery courier operation, and a growing prediction-markets product (Pick6). They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is CHDN or DKNG the better stock?
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Neither is universally better. DKNG is the larger incumbent; CHDN is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, CHDN or DKNG?
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On forward P/E (as of July 2026), CHDN trades at 12.27x and DKNG at 14.31x, so CHDN is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both CHDN and DKNG?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of CHDN vs DKNG?
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CHDN: Churchill Downs carries substantial leverage, with net debt of roughly $4.9 billion and a debt-to-equity ratio well above peers, which magnifies both returns and downside as interest costs and maturities in 2027 and 2028 come due. The business is exposed to discretionary consumer spending, so a weaker economy could pressure gaming volumes and Derby-week spend. Large capital projects and acquisitions carry execution and financing risk, and regional gaming faces competition and potential regulatory or tax changes. HRM legality and expansion depend on state-by-state rules that could shift. Concentration in a single flagship event also means weather, safety, or reputational issues around the Derby carry outsized weight. DKNG: Valuation is the central risk: the stock trades at a very high multiple of trailing GAAP earnings (which remain minimal), so disappointment on margin or growth can drive sharp drawdowns. State tax increases (such as higher rates in Illinois, New Jersey, and elsewhere) directly compress unit economics, and elevated promotional spending can return if competition intensifies. CFTC-regulated prediction markets like Kalshi and Polymarket can offer sports-style event contracts even in states where sportsbooks are banned (for example California), pressuring both the growth story and states' willingness to expand licensed betting. Results also swing with sport outcomes, since customer-friendly results can dent quarterly revenue, and any regulatory tightening or responsible-gaming action adds uncertainty.
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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell CHDN or DKNG; figures are approximate and dated (as of July 2026). Verify current data before investing.