Analyzing Super Group (SGHC) (NYSE:SGHC) and Corsair Gaming (NASDAQ:CRSR)

Corsair Gaming (NASDAQ:CRSR) and Super Group (SGHC) (NYSE:SGHC) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Corsair Gaming	-2.46%	3.37%	1.66%
Super Group (SGHC)	10.05%	43.14%	25.20%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corsair Gaming	1	3	4	0	2.38
Super Group (SGHC)	0	1	7	2	3.10

Corsair Gaming presently has a consensus price target of $8.79, indicating a potential upside of 69.94%. Super Group (SGHC) has a consensus price target of $16.78, indicating a potential upside of 89.79%. Given Super Group (SGHC)’s stronger consensus rating and higher probable upside, analysts plainly believe Super Group (SGHC) is more favorable than Corsair Gaming.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corsair Gaming	$1.32 billion	0.42	-$99.18 million	($0.34)	-15.21
Super Group (SGHC)	$1.84 billion	2.42	$122.38 million	$0.43	20.56

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

Insider & Institutional Ownership

25.7% of Corsair Gaming shares are held by institutional investors. Comparatively, 5.1% of Super Group (SGHC) shares are held by institutional investors. 58.4% of Corsair Gaming shares are held by insiders. Comparatively, 10.4% of Super Group (SGHC) shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Corsair Gaming has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Super Group (SGHC) has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Summary

Super Group (SGHC) beats Corsair Gaming on 12 of the 15 factors compared between the two stocks.

About Corsair Gaming

Corsair Gaming, Inc., together with its subsidiaries, designs, develops, markets, and sells gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. It offers gamer and creator peripherals, including gaming keyboards, mice, headsets, controllers, and streaming products, such as capture cards, stream decks, microphones and audio interfaces, facecam streaming cameras, studio accessories, gaming furniture, and other related products. The company also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs and laptops, gaming monitors, and others; and PC gaming software comprising iCUE for gamers and Elgato streaming suite for content creators, as well as digital services. It sells its products through e-retail, retail, and direct-to-consumer channels and distributors. Corsair Gaming, Inc. was formerly known as Corsair Components (Cayman) Ltd and changed its name to Corsair Gaming, Inc in August 2017. The company was incorporated in 1994 and is headquartered in Milpitas, California.

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.