Critical Survey: Super Group (SGHC) (NYSE:SGHC) versus Wynn Resorts (NASDAQ:WYNN)

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

Volatility and Risk

Super Group (SGHC) has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Wynn Resorts has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Valuation and Earnings

This table compares Super Group (SGHC) and Wynn Resorts”s top-line 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	2.98	$217.00 million	$0.48	27.38
Wynn Resorts	$7.14 billion	1.39	$327.33 million	$3.35	28.48

Wynn Resorts has higher revenue and earnings than Super Group (SGHC). Super Group (SGHC) is trading at a lower price-to-earnings ratio than Wynn Resorts, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Super Group (SGHC) and Wynn Resorts’ 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%
Wynn Resorts	5.14%	-42.03%	3.53%

Dividends

Super Group (SGHC) pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Wynn Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Super Group (SGHC) pays out 41.7% of its earnings in the form of a dividend. Wynn Resorts pays out 29.9% 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. Wynn Resorts has raised its dividend for 1 consecutive years.

Insider and Institutional Ownership

5.1% of Super Group (SGHC) shares are held by institutional investors. Comparatively, 88.6% of Wynn Resorts shares are held by institutional investors. 10.4% of Super Group (SGHC) shares are held by insiders. Comparatively, 0.9% of Wynn Resorts shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Super Group (SGHC) and Wynn Resorts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group (SGHC)	0	2	7	1	2.90
Wynn Resorts	0	2	15	1	2.94

Super Group (SGHC) presently has a consensus target price of $16.75, indicating a potential upside of 27.43%. Wynn Resorts has a consensus target price of $140.00, indicating a potential upside of 46.72%. Given Wynn Resorts’ stronger consensus rating and higher probable upside, analysts clearly believe Wynn Resorts is more favorable than Super Group (SGHC).

Summary

Wynn Resorts beats Super Group (SGHC) on 10 of the 17 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 Wynn Resorts

Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.