Contrasting Tuniu (NASDAQ:TOUR) and Super Group (SGHC) (NYSE:SGHC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Super Group (SGHC)	15.22%	47.37%	29.05%
Tuniu	3.73%	3.17%	1.90%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Super Group (SGHC)	$2.23 billion	2.41	$217.00 million	$0.72	14.74
Tuniu	$593.05 million	0.09	$4.45 million	$0.32	14.77

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

Institutional & Insider Ownership

5.1% of Super Group (SGHC) shares are held by institutional investors. 10.4% of Super Group (SGHC) shares are held by insiders. Comparatively, 76.1% of Tuniu 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.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group (SGHC)	0	3	6	0	2.67
Tuniu	1	0	0	0	1.00

Super Group (SGHC) presently has a consensus price target of $18.00, suggesting a potential upside of 69.60%. Given Super Group (SGHC)’s stronger consensus rating and higher possible upside, equities analysts clearly believe Super Group (SGHC) is more favorable than Tuniu.

Risk and Volatility

Super Group (SGHC) has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Tuniu has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Dividends

Super Group (SGHC) pays an annual dividend of $0.20 per share and has a dividend yield of 1.9%. Tuniu pays an annual dividend of $1.17 per share and has a dividend yield of 24.8%. Super Group (SGHC) pays out 27.8% of its earnings in the form of a dividend. Tuniu pays out 365.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Super Group (SGHC) beats Tuniu on 13 of the 16 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 Tuniu

Tuniu Corporation operates as an online leisure travel company in China. The company offers various packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services, as well as advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels, including tuniu.com website; mobile platform; a call center in Nanjing; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, the People's Republic of China.