Critical Contrast: Super Group (SGHC) (NYSE:SGHC) and GameSquare (NASDAQ:GAME)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GameSquare	-49.30%	-168.15%	-48.86%
Super Group (SGHC)	10.05%	43.14%	25.20%

Institutional & Insider Ownership

64.3% of GameSquare shares are held by institutional investors. Comparatively, 5.1% of Super Group (SGHC) shares are held by institutional investors. 5.1% of GameSquare shares are held by company insiders. Comparatively, 10.4% of Super Group (SGHC) shares are held by company 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for GameSquare and Super Group (SGHC), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameSquare	1	0	0	0	1.00
Super Group (SGHC)	0	1	8	2	3.09

Super Group (SGHC) has a consensus target price of $16.30, indicating a potential upside of 35.10%. Given Super Group (SGHC)’s stronger consensus rating and higher possible upside, analysts plainly believe Super Group (SGHC) is more favorable than GameSquare.

Earnings & Valuation

This table compares GameSquare and Super Group (SGHC)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GameSquare	$96.20 million	0.47	-$48.75 million	($1.04)	-0.44
Super Group (SGHC)	$1.84 billion	3.31	$122.38 million	$0.43	28.06

Super Group (SGHC) has higher revenue and earnings than GameSquare. GameSquare 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

GameSquare has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Super Group (SGHC) has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Summary

Super Group (SGHC) beats GameSquare on 14 of the 15 factors compared between the two stocks.

About GameSquare

GameSquare Holdings, Inc. operates as a vertically integrated digital media, entertainment, and technology company. Its platform to connect with gaming and youth culture audiences. The company’s end-to-end platform includes Code Red Esports Ltd., an esports talent agency; GCN, a digital media company focusing on the gaming and esports audience; Zoned, a gaming and lifestyle marketing agency; Complexity Gaming, a esports organization operating; Fourth Frame Studios, a creative production studio; and Mission Supply, a merchandise and consumer products business; Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform. The company also engages in providing marketing and creative services, offering leading data and analytics solutions. The company was formerly known as Engine Gaming & Media, Inc. GameSquare Holdings, Inc. is headquartered in Frisco, Texas.

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.