Super Group (SGHC) vs. Its Peers Critical Review

Super Group (NYSE:SGHC) is one of 32 public companies in the “Miscellaneous amusement & recreation services” industry, but how does it compare to its competitors? We will compare Super Group to similar companies based on the strength of its analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Insider & Institutional Ownership

5.1% of Super Group shares are owned by institutional investors. Comparatively, 52.8% of shares of all “Miscellaneous amusement & recreation services” companies are owned by institutional investors. 10.4% of Super Group shares are owned by insiders. Comparatively, 21.5% of shares of all “Miscellaneous amusement & recreation services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Super Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Super Group	4.33%	11.56%	6.93%
Super Group Competitors	-107.17%	-55.34%	-21.78%

Volatility and Risk

Super Group has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Super Group’s competitors have a beta of 1.26, indicating that their average stock price is 26% more volatile than the S&P 500.

Valuation & Earnings

This table compares Super Group and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Super Group	$1.55 billion	-$11.42 million	32.42
Super Group Competitors	$4.29 billion	$103.03 million	25.14

Super Group’s competitors have higher revenue and earnings than Super Group. Super Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Super Group and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group	0	0	2	0	3.00
Super Group Competitors	218	971	2196	62	2.61

Super Group presently has a consensus price target of $5.25, suggesting a potential upside of 34.96%. As a group, “Miscellaneous amusement & recreation services” companies have a potential upside of 28.50%. Given Super Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Super Group is more favorable than its competitors.

Summary

Super Group beats its competitors on 7 of the 13 factors compared.

Super Group Company Profile

Super Group (SGHC) Limited operates as an online sports betting and gaming operator. It offers Betway, an online sports betting brand; and Spin, a multi-brand online casino offering. The company is based in Saint Peter Port, Guernsey.