Financial Comparison: GameStop (NYSE:GME) versus Super Group (SGHC) (NYSE:SGHC)
by Tristan Rich · The Markets DailyGameStop (NYSE:GME – Get Free Report) and Super Group (SGHC) (NYSE:SGHC – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
Analyst Ratings
This is a summary of recent ratings and target prices for GameStop and Super Group (SGHC), as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GameStop | 1 | 1 | 0 | 0 | 1.50 |
| Super Group (SGHC) | 0 | 1 | 7 | 2 | 3.10 |
GameStop presently has a consensus price target of $13.50, indicating a potential downside of 43.30%. Super Group (SGHC) has a consensus price target of $16.75, indicating a potential upside of 52.34%. Given Super Group (SGHC)’s stronger consensus rating and higher probable upside, analysts clearly believe Super Group (SGHC) is more favorable than GameStop.
Institutional & Insider Ownership
29.2% of GameStop shares are owned by institutional investors. Comparatively, 5.1% of Super Group (SGHC) shares are owned by institutional investors. 8.6% of GameStop 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
GameStop has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500. Comparatively, Super Group (SGHC) has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.
Earnings & Valuation
This table compares GameStop and Super Group (SGHC)”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GameStop | $3.82 billion | 2.79 | $131.30 million | $0.82 | 29.04 |
| Super Group (SGHC) | $1.84 billion | 3.01 | $122.38 million | $0.43 | 25.57 |
GameStop has higher revenue and earnings than Super Group (SGHC). Super Group (SGHC) is trading at a lower price-to-earnings ratio than GameStop, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares GameStop and Super Group (SGHC)’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GameStop | 11.08% | 9.75% | 5.80% |
| Super Group (SGHC) | 10.05% | 43.14% | 25.20% |
Summary
Super Group (SGHC) beats GameStop on 8 of the 15 factors compared between the two stocks.
About GameStop
GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, as well as engages in the digital asset wallet and NFT marketplace activities. The company operates stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer magazine, a print and digital gaming publication. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.
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.