Caesars Entertainment (NASDAQ:CZR – Get Free Report) and Super Group (SGHC) (NYSE:SGHC – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Risk & Volatility
Caesars Entertainment has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500. Comparatively, Super Group (SGHC) has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.
Profitability
This table compares Caesars Entertainment and Super Group (SGHC)’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Caesars Entertainment | -4.55% | -9.83% | -1.11% |
| Super Group (SGHC) | 16.74% | 49.92% | 31.22% |
Valuation & Earnings
This table compares Caesars Entertainment and Super Group (SGHC)”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Caesars Entertainment | $11.49 billion | 0.52 | -$502.00 million | ($2.62) | -11.16 |
| Super Group (SGHC) | $2.23 billion | 2.57 | $217.00 million | $0.81 | 14.00 |
Super Group (SGHC) has lower revenue, but higher earnings than Caesars Entertainment. Caesars 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.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Caesars Entertainment and Super Group (SGHC), as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Caesars Entertainment | 2 | 15 | 1 | 0 | 1.94 |
| Super Group (SGHC) | 0 | 2 | 5 | 1 | 2.88 |
Caesars Entertainment currently has a consensus price target of $30.54, suggesting a potential upside of 4.48%. Super Group (SGHC) has a consensus price target of $17.20, suggesting a potential upside of 51.64%. Given Super Group (SGHC)’s stronger consensus rating and higher probable upside, analysts plainly believe Super Group (SGHC) is more favorable than Caesars Entertainment.
Insider and Institutional Ownership
91.8% of Caesars Entertainment shares are held by institutional investors. Comparatively, 5.1% of Super Group (SGHC) shares are held by institutional investors. 1.2% of Caesars Entertainment shares are held by insiders. Comparatively, 10.4% of Super Group (SGHC) shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Super Group (SGHC) beats Caesars Entertainment on 12 of the 15 factors compared between the two stocks.
About Caesars Entertainment
Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.
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.
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