Analyzing Super Group (SGHC) (NYSE:SGHC) and Simplicity Esports and Gaming (OTCMKTS:WINR)

Super Group (SGHC) (NYSE:SGHC) and Simplicity Esports and Gaming (OTCMKTS:WINR) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Institutional and Insider Ownership

5.1% of Super Group (SGHC) shares are held by institutional investors. 10.4% of Super Group (SGHC) shares are held by insiders. Comparatively, 15.4% of Simplicity Esports and Gaming shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Super Group (SGHC) and Simplicity Esports and Gaming”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Super Group (SGHC)	$2.00 billion	3.27	$122.38 million	$0.26	50.00
Simplicity Esports and Gaming	N/A	N/A	N/A	N/A	N/A

Super Group (SGHC) has higher revenue and earnings than Simplicity Esports and Gaming.

Profitability

This table compares Super Group (SGHC) and Simplicity Esports and Gaming’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%
Simplicity Esports and Gaming	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for Super Group (SGHC) and Simplicity Esports and Gaming, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group (SGHC)	0	1	8	2	3.09
Simplicity Esports and Gaming	0	0	0	0	0.00

Super Group (SGHC) presently has a consensus price target of $15.40, suggesting a potential upside of 18.46%. Given Super Group (SGHC)’s stronger consensus rating and higher possible upside, research analysts clearly believe Super Group (SGHC) is more favorable than Simplicity Esports and Gaming.

Summary

Super Group (SGHC) beats Simplicity Esports and Gaming on 9 of the 10 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 Simplicity Esports and Gaming

Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.