Super Group (SGHC) (NYSE:SGHC – Get Free Report) and Travel + Leisure (NYSE:TNL – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Super Group (SGHC) and Travel + Leisure, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Super Group (SGHC) | 0 | 3 | 6 | 0 | 2.67 |
| Travel + Leisure | 1 | 2 | 11 | 0 | 2.71 |
Super Group (SGHC) currently has a consensus price target of $18.00, indicating a potential upside of 68.07%. Travel + Leisure has a consensus price target of $85.25, indicating a potential upside of 19.06%. Given Super Group (SGHC)’s higher probable upside, analysts clearly believe Super Group (SGHC) is more favorable than Travel + Leisure.
Volatility & Risk
Super Group (SGHC) has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Travel + Leisure has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.
Institutional & Insider Ownership
5.1% of Super Group (SGHC) shares are owned by institutional investors. Comparatively, 87.5% of Travel + Leisure shares are owned by institutional investors. 10.4% of Super Group (SGHC) shares are owned by insiders. Comparatively, 4.0% of Travel + Leisure shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Super Group (SGHC) and Travel + Leisure”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 | 2.43 | $217.00 million | $0.72 | 14.88 |
| Travel + Leisure | $4.15 billion | 1.04 | $230.00 million | $3.72 | 19.25 |
Travel + Leisure has higher revenue and earnings than Super Group (SGHC). Super Group (SGHC) is trading at a lower price-to-earnings ratio than Travel + Leisure, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Super Group (SGHC) and Travel + Leisure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Super Group (SGHC) | 15.22% | 47.37% | 29.05% |
| Travel + Leisure | 5.66% | -46.63% | 6.76% |
Dividends
Super Group (SGHC) pays an annual dividend of $0.20 per share and has a dividend yield of 1.9%. Travel + Leisure pays an annual dividend of $2.40 per share and has a dividend yield of 3.4%. Super Group (SGHC) pays out 27.8% of its earnings in the form of a dividend. Travel + Leisure pays out 64.5% 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. Travel + Leisure has increased its dividend for 5 consecutive years. Travel + Leisure is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Travel + Leisure beats Super Group (SGHC) on 10 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 Travel + Leisure
Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.
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