Head to Head Survey: GameSquare (NASDAQ:GAME) and Super Group (SGHC) (NYSE:SGHC)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Super Group (SGHC) and GameSquare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group (SGHC)	0	1	8	2	3.09
GameSquare	1	0	0	0	1.00

Super Group (SGHC) presently has a consensus price target of $16.30, suggesting a potential upside of 39.44%. Given Super Group (SGHC)’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Super Group (SGHC) is more favorable than GameSquare.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Super Group (SGHC)	$2.12 billion	2.78	$122.38 million	$0.43	27.19
GameSquare	$96.20 million	0.52	-$48.75 million	($1.04)	-0.49

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

Institutional and Insider Ownership

5.1% of Super Group (SGHC) shares are held by institutional investors. Comparatively, 64.3% of GameSquare shares are held by institutional investors. 10.4% of Super Group (SGHC) shares are held by insiders. Comparatively, 5.1% of GameSquare shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Super Group (SGHC)	10.05%	43.14%	25.20%
GameSquare	-49.30%	-168.15%	-48.86%

Risk & Volatility

Super Group (SGHC) has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, GameSquare has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Summary

Super Group (SGHC) beats GameSquare on 14 of the 15 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 GameSquare

GameSquare Holdings, Inc. operates as a vertically integrated digital media, entertainment, and technology company. Its platform to connect with gaming and youth culture audiences. The company’s end-to-end platform includes Code Red Esports Ltd., an esports talent agency; GCN, a digital media company focusing on the gaming and esports audience; Zoned, a gaming and lifestyle marketing agency; Complexity Gaming, a esports organization operating; Fourth Frame Studios, a creative production studio; and Mission Supply, a merchandise and consumer products business; Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform. The company also engages in providing marketing and creative services, offering leading data and analytics solutions. The company was formerly known as Engine Gaming & Media, Inc. GameSquare Holdings, Inc. is headquartered in Frisco, Texas.