Analyzing Super Group (SGHC) (NYSE:SGHC) and Lagardere (OTCMKTS:LGDDF)

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

Insider and Institutional Ownership

5.1% of Super Group (SGHC) shares are held by institutional investors. Comparatively, 25.5% of Lagardere shares are held by institutional investors. 10.4% of Super Group (SGHC) shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Super Group (SGHC) and Lagardere’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%
Lagardere	N/A	N/A	N/A

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group (SGHC)	0	2	7	0	2.78
Lagardere	0	0	0	0	0.00

Super Group (SGHC) currently has a consensus target price of $18.71, indicating a potential upside of 43.46%. Given Super Group (SGHC)’s stronger consensus rating and higher possible upside, equities analysts clearly believe Super Group (SGHC) is more favorable than Lagardere.

Dividends

Super Group (SGHC) pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Lagardere pays an annual dividend of $1.30 per share and has a dividend yield of 6.4%. Super Group (SGHC) pays out 27.8% of its earnings in the form of a dividend. Lagardere pays out -79.6% 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. Lagardere is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Super Group (SGHC) and Lagardere”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Super Group (SGHC)	$2.23 billion	2.96	$217.00 million	$0.72	18.12
Lagardere	N/A	N/A	N/A	($1.63)	-12.44

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

Summary

Super Group (SGHC) beats Lagardere on 10 of the 13 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 Lagardere

Lagardere SA engages in content publishing, production, broadcasting, and distribution businesses in France and internationally. It operates through two divisions: Lagardère Publishing, and Lagardère Travel Retail. The Lagardère Publishing division includes book publishing and e-publishing businesses, which cover the areas of education, general literature, illustrated books, partworks, dictionaries, children and youth adult, mobile games, board games, and stationery and distribution in English, French, and Spanish languages. The Lagardère Travel Retail division involved in retail activities in transit areas and concessions in travel essentials, duty free and fashion, and food services fields. It operates through stores under its own international store names, such as Relay, Hubiz, 1Minute, Hub Convenience, Discover, Tech2go, Aelia Duty Free, The Fashion Gallery, The Fashion Place, Eye Love, So Chocolate, Bread&Co., Hello!, So! Coffee, Trib's, Vino Volo, Natoo, etc., as well as store names with a local identity comprising BuY Paris Duty Free, Casa Del Gusto, and The Belgian Chocolate House. It also operates stores under franchises or licenses, with retail partners that include TripAdvisor, Fnac, iStore, Marks & Spencer, Hermès, Victoria's Secret, Nespresso, Costa Coffee, Burger King, Dean & Deluca, Eric Kayser, and Paul. The company was formerly known as Lagardère SCA and changed its name to Lagardere SA in June 2021. The company was founded in 1826 and is headquartered in Paris, France. As of November 21, 2023, Lagardere SA operates as a subsidiary of Vivendi SE.