Reviewing Roblox (NYSE:RBLX) and Super Group (SGHC) (NYSE:SGHC)

Roblox (NYSE:RBLX) and Super Group (SGHC) (NYSE:SGHC) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roblox	$3.60 billion	14.91	-$935.38 million	($1.43)	-57.35
Super Group (SGHC)	$1.84 billion	3.27	$122.38 million	$0.43	27.72

Super Group (SGHC) has lower revenue, but higher earnings than Roblox. Roblox 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roblox	-21.70%	-314.20%	-12.47%
Super Group (SGHC)	10.05%	43.14%	25.20%

Risk & Volatility

Roblox has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Super Group (SGHC) has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Institutional & Insider Ownership

94.5% of Roblox shares are owned by institutional investors. Comparatively, 5.1% of Super Group (SGHC) shares are owned by institutional investors. 12.9% of Roblox 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, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Roblox and Super Group (SGHC), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roblox	3	9	18	0	2.50
Super Group (SGHC)	0	1	8	2	3.09

Roblox currently has a consensus target price of $135.88, indicating a potential upside of 65.68%. Super Group (SGHC) has a consensus target price of $16.30, indicating a potential upside of 36.74%. Given Roblox’s higher probable upside, analysts clearly believe Roblox is more favorable than Super Group (SGHC).

Summary

Super Group (SGHC) beats Roblox on 8 of the 15 factors compared between the two stocks.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.

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.