Critical Survey: Super Group (SGHC) (NYSE:SGHC) versus Sharplink Gaming (NASDAQ:SBET)

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

Insider and Institutional Ownership

5.1% of Super Group (SGHC) shares are held by institutional investors. Comparatively, 13.8% of Sharplink Gaming shares are held by institutional investors. 10.4% of Super Group (SGHC) shares are held by insiders. Comparatively, 3.6% of Sharplink Gaming shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Super Group (SGHC) and Sharplink Gaming”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	3.28	$217.00 million	$0.48	30.18
Sharplink Gaming	$28.06 million	43.38	-$734.59 million	($0.60)	-10.03

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

Risk and Volatility

Super Group (SGHC) has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Sharplink Gaming has a beta of 10.45, indicating that its share price is 945% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Super Group (SGHC) and Sharplink Gaming, 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
Sharplink Gaming	1	1	9	0	2.73

Super Group (SGHC) presently has a consensus target price of $18.43, indicating a potential upside of 27.21%. Sharplink Gaming has a consensus target price of $20.23, indicating a potential upside of 236.38%. Given Sharplink Gaming’s higher possible upside, analysts clearly believe Sharplink Gaming is more favorable than Super Group (SGHC).

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Super Group (SGHC)	10.58%	42.85%	26.15%
Sharplink Gaming	-3,604.61%	-38.53%	-38.41%

Summary

Super Group (SGHC) beats Sharplink Gaming on 9 of the 14 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 Sharplink Gaming

SharpLink Gaming, Inc. operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company's sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers. It also provides iGaming and affiliate marketing network, which focuses on delivering quality traffic and player acquisitions, and retention and conversions to global iGaming operator partners worldwide; and development, hosting, operations, maintenance, and service of free-to-play games and contests. In addition, the company owns and operates various real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States, where fantasy sports play is legal and in which SportsHub has elected to operate based on the financial viability. SharpLink Gaming, Inc. was founded in 2019 and is headquartered in Minneapolis, Minnesota.