Contrasting Super Group (SGHC) (NYSE:SGHC) and Churchill Downs (NASDAQ:CHDN)

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

Risk & Volatility

Churchill Downs has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Super Group (SGHC) has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Churchill Downs	$2.93 billion	2.02	$383.00 million	$5.40	15.67
Super Group (SGHC)	$2.23 billion	3.02	$217.00 million	$0.48	27.78

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

Analyst Ratings

This is a summary of current ratings and target prices for Churchill Downs and Super Group (SGHC), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Churchill Downs	1	0	11	0	2.83
Super Group (SGHC)	0	2	7	0	2.78

Churchill Downs presently has a consensus price target of $139.00, indicating a potential upside of 64.28%. Super Group (SGHC) has a consensus price target of $17.57, indicating a potential upside of 31.79%. Given Churchill Downs’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Churchill Downs is more favorable than Super Group (SGHC).

Insider and Institutional Ownership

82.6% of Churchill Downs shares are owned by institutional investors. Comparatively, 5.1% of Super Group (SGHC) shares are owned by institutional investors. 5.9% of Churchill Downs shares are owned by company insiders. Comparatively, 10.4% of Super Group (SGHC) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Churchill Downs	13.21%	43.50%	6.10%
Super Group (SGHC)	10.58%	42.85%	26.15%

Dividends

Churchill Downs pays an annual dividend of $0.44 per share and has a dividend yield of 0.5%. Super Group (SGHC) pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Churchill Downs pays out 8.1% of its earnings in the form of a dividend. Super Group (SGHC) pays out 41.7% 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. Churchill Downs has raised its dividend for 14 consecutive years.

Summary

Churchill Downs beats Super Group (SGHC) on 11 of the 17 factors compared between the two stocks.

About Churchill Downs

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.

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.