Comparing Bally’s (NYSE:BALY) & Super Group (SGHC) (NYSE:SGHC)

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

Profitability

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

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

Risk and Volatility

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Super Group (SGHC)	$1.84 billion	3.14	$122.38 million	$0.43	26.66
Bally’s	$2.45 billion	0.32	-$567.75 million	($4.88)	-3.30

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

Institutional & Insider Ownership

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

Analyst Recommendations

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

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

Super Group (SGHC) currently has a consensus target price of $16.30, suggesting a potential upside of 42.17%. Bally’s has a consensus target price of $16.50, suggesting a potential upside of 2.58%. Given Super Group (SGHC)’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Super Group (SGHC) is more favorable than Bally’s.

Summary

Super Group (SGHC) beats Bally’s on 11 of the 15 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 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.