Super Group (SGHC) (NYSE:SGHC – Get Free Report) and Churchill Downs (NASDAQ:CHDN – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
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 $0.44 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 8.1% 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.
Risk and Volatility
Super Group (SGHC) has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
Profitability
| 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% |
Valuation and Earnings
This table compares Super Group (SGHC) and Churchill Downs”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Super Group (SGHC) | $2.23 billion | 3.02 | $217.00 million | $0.48 | 27.78 |
| Churchill Downs | $2.93 billion | 2.02 | $383.00 million | $5.40 | 15.67 |
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.
Analyst Recommendations
This is a summary of recent ratings for Super Group (SGHC) and Churchill Downs, 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 |
| Churchill Downs | 1 | 0 | 11 | 0 | 2.83 |
Super Group (SGHC) presently has a consensus target price of $17.57, suggesting a potential upside of 31.79%. Churchill Downs has a consensus target price of $139.00, suggesting a potential upside of 64.28%. Given Churchill Downs’ stronger consensus rating and higher probable upside, analysts clearly believe Churchill Downs is more favorable than Super Group (SGHC).
Insider and Institutional 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 insiders. Comparatively, 5.9% of Churchill Downs shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Churchill Downs beats Super Group (SGHC) on 11 of the 17 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 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.
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