Financial Contrast: Roblox (NYSE:RBLX) and Super Group (SGHC) (NYSE:SGHC)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Super Group (SGHC)	$1.84 billion	3.25	$122.38 million	$0.43	27.54
Roblox	$3.60 billion	14.88	-$935.38 million	($1.43)	-57.22

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

Analyst Recommendations

This is a summary of current recommendations for Super Group (SGHC) and Roblox, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group (SGHC)	0	1	8	2	3.09
Roblox	3	9	18	0	2.50

Super Group (SGHC) currently has a consensus price target of $16.30, indicating a potential upside of 37.63%. Roblox has a consensus price target of $135.88, indicating a potential upside of 66.08%. Given Roblox’s higher possible upside, analysts plainly believe Roblox is more favorable than Super Group (SGHC).

Insider and Institutional Ownership

5.1% of Super Group (SGHC) shares are held by institutional investors. Comparatively, 94.5% of Roblox shares are held by institutional investors. 10.4% of Super Group (SGHC) shares are held by company insiders. Comparatively, 12.9% of Roblox shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

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, Roblox has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.

Profitability

This table compares Super Group (SGHC) and Roblox’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%
Roblox	-21.70%	-314.20%	-12.47%

Summary

Super Group (SGHC) beats Roblox on 8 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 Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.