Head-To-Head Review: Playtika (NASDAQ:PLTK) vs. Super Group (SGHC) (NYSE:SGHC)

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

Institutional & Insider Ownership

5.1% of Super Group (SGHC) shares are owned by institutional investors. Comparatively, 11.9% of Playtika shares are owned by institutional investors. 10.4% of Super Group (SGHC) shares are owned by insiders. Comparatively, 4.8% of Playtika shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Super Group (SGHC) has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Playtika has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group (SGHC)	0	1	8	2	3.09
Playtika	1	5	3	0	2.22

Super Group (SGHC) presently has a consensus price target of $16.30, suggesting a potential upside of 40.34%. Playtika has a consensus price target of $6.00, suggesting a potential upside of 51.90%. Given Playtika’s higher possible upside, analysts clearly believe Playtika is more favorable than Super Group (SGHC).

Dividends

Super Group (SGHC) pays an annual dividend of $0.16 per share and has a dividend yield of 1.4%. Playtika pays an annual dividend of $0.40 per share and has a dividend yield of 10.1%. Super Group (SGHC) pays out 37.2% of its earnings in the form of a dividend. Playtika pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Super Group (SGHC) and Playtika”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)	$1.84 billion	3.18	$122.38 million	$0.43	27.01
Playtika	$2.55 billion	0.58	$162.20 million	$0.24	16.46

Playtika has higher revenue and earnings than Super Group (SGHC). Playtika 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 Super Group (SGHC) and Playtika’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%
Playtika	3.16%	-114.44%	3.23%

Summary

Super Group (SGHC) beats Playtika on 12 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 Playtika

Playtika Holding Corp., together with its subsidiaries, develops mobile games in the United States, Europe, Middle East, Africa, Asia pacific, and internationally. The company owns a portfolio of casual and social casino-themed games. It distributes its games to the end customer through various web and mobile platforms and direct-to-consumer platforms. Playtika Holding Corp. was founded in 2010 and is headquartered in Herzliya Pituach, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding UK II Limited.