Contrasting Tuniu (NASDAQ:TOUR) and Super Group (SGHC) (NYSE:SGHC)

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

Volatility and Risk

Tuniu has a beta of 0.47, suggesting that its share price is 53% less 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.

Institutional and Insider Ownership

5.1% of Super Group (SGHC) shares are owned by institutional investors. 76.1% of Tuniu shares are owned by insiders. Comparatively, 10.4% of Super Group (SGHC) shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Tuniu and Super Group (SGHC), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tuniu	1	0	0	0	1.00
Super Group (SGHC)	0	3	5	0	2.62

Super Group (SGHC) has a consensus target price of $17.20, indicating a potential upside of 50.82%. Given Super Group (SGHC)’s stronger consensus rating and higher possible upside, analysts clearly believe Super Group (SGHC) is more favorable than Tuniu.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tuniu	3.73%	3.17%	1.90%
Super Group (SGHC)	16.74%	49.92%	31.22%

Dividends

Tuniu pays an annual dividend of $1.18 per share and has a dividend yield of 25.2%. Super Group (SGHC) pays an annual dividend of $0.20 per share and has a dividend yield of 1.8%. Tuniu pays out 368.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Super Group (SGHC) pays out 24.7% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Tuniu 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
Tuniu	$82.65 million	0.62	$4.45 million	$0.32	14.64
Super Group (SGHC)	$2.48 billion	2.32	$217.00 million	$0.81	14.08

Super Group (SGHC) has higher revenue and earnings than Tuniu. Super Group (SGHC) is trading at a lower price-to-earnings ratio than Tuniu, indicating that it is currently the more affordable of the two stocks.

Summary

Super Group (SGHC) beats Tuniu on 13 of the 16 factors compared between the two stocks.

About Tuniu

Tuniu Corporation operates as an online leisure travel company in China. The company offers various packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services, as well as advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels, including tuniu.com website; mobile platform; a call center in Nanjing; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, the People's Republic of China.

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.