Super Group (SGHC) (NYSE:SGHC) and Churchill Downs (NASDAQ:CHDN) Head-To-Head Review

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

Risk & Volatility

Super Group (SGHC) has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group (SGHC)	0	2	7	0	2.78
Churchill Downs	1	0	11	0	2.83

Super Group (SGHC) currently has a consensus target price of $17.57, suggesting a potential upside of 27.68%. Churchill Downs has a consensus target price of $139.00, suggesting a potential upside of 52.97%. Given Churchill Downs’ stronger consensus rating and higher possible upside, analysts clearly believe Churchill Downs is more favorable than Super Group (SGHC).

Dividends

Super Group (SGHC) pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Churchill Downs pays an annual dividend of $0.43 per share and has a dividend yield of 0.5%. Super Group (SGHC) pays out 41.7% of its earnings in the form of a dividend. Churchill Downs pays out 8.0% 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. Churchill Downs has raised its dividend for 14 consecutive years.

Earnings & Valuation

This table compares Super Group (SGHC) and Churchill Downs”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Super Group (SGHC)	$2.33 billion	2.99	$217.00 million	$0.48	28.67
Churchill Downs	$2.95 billion	2.15	$383.00 million	$5.40	16.83

Churchill Downs has higher revenue and earnings than Super Group (SGHC). Churchill Downs 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Super Group (SGHC)	10.58%	42.85%	26.15%
Churchill Downs	13.21%	43.50%	6.10%

Institutional and Insider Ownership

5.1% of Super Group (SGHC) shares are owned by institutional investors. Comparatively, 82.6% of Churchill Downs shares are owned by institutional investors. 10.4% of Super Group (SGHC) shares are owned by company insiders. Comparatively, 5.9% of Churchill Downs shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Churchill Downs beats Super Group (SGHC) on 11 of the 17 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 Churchill Downs

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.