Critical Contrast: Super Group (SGHC) (NYSE:SGHC) and Snail (NASDAQ:SNAL)

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

Institutional & Insider Ownership

5.1% of Super Group (SGHC) shares are owned by institutional investors. Comparatively, 0.4% of Snail shares are owned by institutional investors. 10.4% of Super Group (SGHC) shares are owned by insiders. Comparatively, 78.2% of Snail shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Super Group (SGHC)	6.42%	36.68%	21.00%
Snail	-4.80%	-1,183.47%	14.24%

Valuation and Earnings

This table compares Super Group (SGHC) and Snail”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)	$1.84 billion	3.63	$122.38 million	$0.26	50.96
Snail	$84.47 million	0.48	$1.83 million	($0.46)	-2.37

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

Volatility and Risk

Super Group (SGHC) has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Snail has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Super Group (SGHC) and Snail, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group (SGHC)	0	0	8	2	3.20
Snail	0	0	0	0	0.00

Super Group (SGHC) currently has a consensus price target of $15.40, suggesting a potential upside of 16.23%. Given Super Group (SGHC)’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Super Group (SGHC) is more favorable than Snail.

Summary

Super Group (SGHC) beats Snail on 14 of the 15 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 Snail

Snail, Inc., together with its subsidiaries, researches, develops, markets, publishes, and distributes interactive digital entertainment for consumers worldwide. It offers games, content, and support for various platforms, including game consoles, personal computers, mobile phones, and tablets. Snail, Inc. was founded in 2009 and is headquartered in Culver City, California. Snail, Inc. operates as a subsidiary of Olive Wood Global Development Limited.