Analyzing Super Group (SGHC) (NYSE:SGHC) & Travel + Leisure (NYSE:TNL)

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

Valuation & Earnings

This table compares Travel + Leisure and Super Group (SGHC)”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travel + Leisure	$4.15 billion	1.08	$230.00 million	$3.72	20.06
Super Group (SGHC)	$2.48 billion	2.24	$217.00 million	$0.81	13.60

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

Dividends

Travel + Leisure pays an annual dividend of $2.40 per share and has a dividend yield of 3.2%. Super Group (SGHC) pays an annual dividend of $0.20 per share and has a dividend yield of 1.8%. Travel + Leisure pays out 64.5% of its earnings in the form of a dividend. Super Group (SGHC) pays out 24.7% 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. Travel + Leisure has increased its dividend for 5 consecutive years. Travel + Leisure is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Travel + Leisure and Super Group (SGHC)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travel + Leisure	5.66%	-46.63%	6.76%
Super Group (SGHC)	16.74%	49.92%	31.22%

Risk & Volatility

Travel + Leisure has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Super Group (SGHC) has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Travel + Leisure and Super Group (SGHC), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travel + Leisure	0	4	10	0	2.71
Super Group (SGHC)	0	3	5	0	2.62

Travel + Leisure presently has a consensus target price of $85.25, indicating a potential upside of 14.24%. Super Group (SGHC) has a consensus target price of $17.20, indicating a potential upside of 56.08%. Given Super Group (SGHC)’s higher possible upside, analysts plainly believe Super Group (SGHC) is more favorable than Travel + Leisure.

Institutional and Insider Ownership

87.5% of Travel + Leisure shares are owned by institutional investors. Comparatively, 5.1% of Super Group (SGHC) shares are owned by institutional investors. 4.0% of Travel + Leisure 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 company is poised for long-term growth.

Summary

Travel + Leisure beats Super Group (SGHC) on 10 of the 17 factors compared between the two stocks.

About Travel + Leisure

Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.

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.