Head-To-Head Review: Super Group (SGHC) (NYSE:SGHC) & Bally’s (NYSE:BALY)

Bally’s (NYSE:BALY) and Super Group (SGHC) (NYSE:SGHC) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Bally’s and Super Group (SGHC), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bally’s	1	5	0	0	1.83
Super Group (SGHC)	0	1	8	2	3.09

Bally’s currently has a consensus target price of $16.50, suggesting a potential upside of 6.08%. Super Group (SGHC) has a consensus target price of $16.30, suggesting a potential upside of 45.34%. Given Super Group (SGHC)’s stronger consensus rating and higher possible upside, analysts plainly believe Super Group (SGHC) is more favorable than Bally’s.

Profitability

This table compares Bally’s and Super Group (SGHC)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bally’s	-17.41%	-63.71%	-4.45%
Super Group (SGHC)	10.05%	43.14%	25.20%

Insider and Institutional Ownership

70.4% of Bally’s shares are owned by institutional investors. Comparatively, 5.1% of Super Group (SGHC) shares are owned by institutional investors. 74.9% of Bally’s shares are owned by company insiders. Comparatively, 10.4% of Super Group (SGHC) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Bally’s and Super Group (SGHC)”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bally’s	$2.45 billion	0.31	-$567.75 million	($4.88)	-3.19
Super Group (SGHC)	$1.84 billion	3.07	$122.38 million	$0.43	26.08

Super Group (SGHC) has lower revenue, but higher earnings than Bally’s. Bally’s is trading at a lower price-to-earnings ratio than Super Group (SGHC), indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Bally’s has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Super Group (SGHC) has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Summary

Super Group (SGHC) beats Bally’s on 11 of the 15 factors compared between the two stocks.

About Bally’s

Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.

About Super Group (SGHC)

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. Super Group (SGHC) Limited is based in Saint Peter Port, Guernsey.