Comparing Skillz (NYSE:SKLZ) & Super Group (SGHC) (NYSE:SGHC)

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

Analyst Recommendations

This is a breakdown of current ratings for Super Group (SGHC) and Skillz, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group (SGHC)	0	1	8	2	3.09
Skillz	1	0	1	0	2.00

Super Group (SGHC) presently has a consensus price target of $15.40, indicating a potential upside of 9.25%. Skillz has a consensus price target of $15.00, indicating a potential upside of 85.64%. Given Skillz’s higher probable upside, analysts plainly believe Skillz is more favorable than Super Group (SGHC).

Institutional and Insider Ownership

5.1% of Super Group (SGHC) shares are owned by institutional investors. Comparatively, 19.4% of Skillz shares are owned by institutional investors. 10.4% of Super Group (SGHC) shares are owned by company insiders. Comparatively, 30.4% of Skillz shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Super Group (SGHC) has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Skillz has a beta of 2.98, meaning that its stock price is 198% more volatile than the S&P 500.

Earnings and Valuation

This table compares Super Group (SGHC) and Skillz”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	3.54	$122.38 million	$0.26	54.22
Skillz	$95.47 million	1.48	-$48.23 million	($4.20)	-1.92

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

Profitability

This table compares Super Group (SGHC) and Skillz’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%
Skillz	-75.38%	-39.99%	-20.44%

Summary

Super Group (SGHC) beats Skillz on 11 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 Skillz

Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.