Super Group (SGHC) (NYSE:SGHC – Get Free Report) and PENN Entertainment (NASDAQ:PENN – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.
Profitability
This table compares Super Group (SGHC) and PENN Entertainment’s 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% |
| PENN Entertainment | -13.55% | 0.44% | 0.07% |
Analyst Recommendations
This is a summary of recent ratings for Super Group (SGHC) and PENN Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Super Group (SGHC) | 0 | 2 | 7 | 0 | 2.78 |
| PENN Entertainment | 1 | 6 | 8 | 0 | 2.47 |
Volatility and Risk
Super Group (SGHC) has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, PENN Entertainment has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.
Institutional & Insider Ownership
5.1% of Super Group (SGHC) shares are held by institutional investors. Comparatively, 91.7% of PENN Entertainment shares are held by institutional investors. 10.4% of Super Group (SGHC) shares are held by insiders. Comparatively, 3.2% of PENN Entertainment 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.
Earnings & Valuation
This table compares Super Group (SGHC) and PENN Entertainment”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Super Group (SGHC) | $2.23 billion | 2.88 | $217.00 million | $0.48 | 26.43 |
| PENN Entertainment | $6.96 billion | 0.39 | -$843.10 million | ($6.72) | -2.99 |
Super Group (SGHC) has higher earnings, but lower revenue than PENN Entertainment. PENN Entertainment 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.
Summary
Super Group (SGHC) beats PENN Entertainment on 10 of the 14 factors compared between the two stocks.
About Super Group (SGHC)
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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 PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.
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