Head-To-Head Analysis: Super Group (SGHC) (NYSE:SGHC) versus Flutter Entertainment (NYSE:FLUT)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Flutter Entertainment and Super Group (SGHC), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flutter Entertainment	3	9	17	2	2.58
Super Group (SGHC)	0	2	6	0	2.75

Flutter Entertainment presently has a consensus target price of $143.59, suggesting a potential upside of 88.40%. Super Group (SGHC) has a consensus target price of $19.00, suggesting a potential upside of 69.13%. Given Flutter Entertainment’s higher possible upside, analysts clearly believe Flutter Entertainment is more favorable than Super Group (SGHC).

Insider and Institutional Ownership

5.1% of Super Group (SGHC) shares are held by institutional investors. 0.1% of Flutter Entertainment shares are held by insiders. Comparatively, 10.4% of Super Group (SGHC) shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Flutter Entertainment has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Super Group (SGHC) has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Earnings & Valuation

This table compares Flutter Entertainment 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
Flutter Entertainment	$17.16 billion	0.77	-$310.00 million	($4.30)	-17.72
Super Group (SGHC)	$2.23 billion	2.55	$217.00 million	$0.72	15.60

Super Group (SGHC) has lower revenue, but higher earnings than Flutter Entertainment. Flutter Entertainment 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 Flutter Entertainment and Super Group (SGHC)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flutter Entertainment	-4.39%	7.27%	2.33%
Super Group (SGHC)	15.22%	47.37%	29.05%

Summary

Super Group (SGHC) beats Flutter Entertainment on 10 of the 15 factors compared between the two stocks.

About Flutter Entertainment

Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting. In addition, it provides online poker, casino, and rummy. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, sisal.com, and maxbet.rs websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. Flutter Entertainment plc was incorporated in 1958 and is headquartered in Dublin, Ireland.

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.