Financial Contrast: Super Group (SGHC) (NYSE:SGHC) vs. Monarch Casino & Resort (NASDAQ:MCRI)

Monarch Casino & Resort (NASDAQ:MCRI) and Super Group (SGHC) (NYSE:SGHC) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Earnings & Valuation

This table compares Monarch Casino & Resort and Super Group (SGHC)”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monarch Casino & Resort	$539.64 million	3.27	$72.77 million	$5.54	17.43
Super Group (SGHC)	$1.84 billion	3.00	$122.38 million	$0.43	25.43

Super Group (SGHC) has higher revenue and earnings than Monarch Casino & Resort. Monarch Casino & Resort 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

Monarch Casino & Resort pays an annual dividend of $1.20 per share and has a dividend yield of 1.2%. Super Group (SGHC) pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. Monarch Casino & Resort pays out 21.7% of its earnings in the form of a dividend. Super Group (SGHC) pays out 37.2% 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.

Volatility and Risk

Monarch Casino & Resort has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Super Group (SGHC) has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Monarch Casino & Resort and Super Group (SGHC), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monarch Casino & Resort	0	5	2	0	2.29
Super Group (SGHC)	0	1	8	2	3.09

Monarch Casino & Resort currently has a consensus price target of $94.60, indicating a potential downside of 2.05%. Super Group (SGHC) has a consensus price target of $16.30, indicating a potential upside of 49.09%. Given Super Group (SGHC)’s stronger consensus rating and higher probable upside, analysts clearly believe Super Group (SGHC) is more favorable than Monarch Casino & Resort.

Institutional and Insider Ownership

62.4% of Monarch Casino & Resort shares are held by institutional investors. Comparatively, 5.1% of Super Group (SGHC) shares are held by institutional investors. 25.5% of Monarch Casino & Resort 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Monarch Casino & Resort and Super Group (SGHC)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monarch Casino & Resort	19.26%	19.33%	14.67%
Super Group (SGHC)	10.05%	43.14%	25.20%

Summary

Super Group (SGHC) beats Monarch Casino & Resort on 10 of the 17 factors compared between the two stocks.

About Monarch Casino & Resort

Monarch Casino & Resort, Inc. engages in the ownership and operation of the Atlantis Casino Resort Spa, a hotel and casino facility in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado. The company was founded in 1993 and is headquartered in Reno, NV.

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.