Arcos Dorados (NYSE:ARCO) versus Super Group (SGHC) (NYSE:SGHC) Head to Head Comparison

Super Group (SGHC) (NYSE:SGHC) and Arcos Dorados (NYSE:ARCO) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Super Group (SGHC)	15.22%	47.37%	29.05%
Arcos Dorados	5.15%	12.50%	2.58%

Institutional and Insider Ownership

5.1% of Super Group (SGHC) shares are owned by institutional investors. Comparatively, 55.9% of Arcos Dorados shares are owned by institutional investors. 10.4% of Super Group (SGHC) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Super Group (SGHC)	$2.23 billion	2.56	$217.00 million	$0.72	15.69
Arcos Dorados	$4.68 billion	0.31	$212.12 million	$1.22	5.55

Super Group (SGHC) has higher earnings, but lower revenue than Arcos Dorados. Arcos Dorados 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.

Dividends

Super Group (SGHC) pays an annual dividend of $0.20 per share and has a dividend yield of 1.8%. Arcos Dorados pays an annual dividend of $0.06 per share and has a dividend yield of 0.9%. Super Group (SGHC) pays out 27.8% of its earnings in the form of a dividend. Arcos Dorados pays out 4.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Arcos Dorados has increased its dividend for 1 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings for Super Group (SGHC) and Arcos Dorados, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group (SGHC)	0	3	6	0	2.67
Arcos Dorados	0	2	3	1	2.83

Super Group (SGHC) presently has a consensus target price of $18.00, suggesting a potential upside of 59.36%. Arcos Dorados has a consensus target price of $9.75, suggesting a potential upside of 43.91%. Given Super Group (SGHC)’s higher possible upside, research analysts plainly believe Super Group (SGHC) is more favorable than Arcos Dorados.

Risk and Volatility

Super Group (SGHC) has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Arcos Dorados has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Summary

Super Group (SGHC) beats Arcos Dorados on 11 of the 18 factors compared between the two stocks.

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.

About Arcos Dorados

Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. The company was founded in 2007 and is based in Montevideo, Uruguay.