Critical Analysis: International Game Technology (NYSE:IGT) versus Super Group (NYSE:SGHC)


International Game Technology (NYSE:IGT – Get Rating) and Super Group (NYSE:SGHC – Get Rating) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Institutional and Insider Ownership

44.3% of International Game Technology shares are held by institutional investors. Comparatively, 4.5% of Super Group shares are held by institutional investors. 1.2% of International Game Technology shares are held by company 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.

Risk and Volatility

International Game Technology has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Super Group has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Earnings and Valuation

This table compares International Game Technology and Super Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
International Game Technology $4.09 billion 1.06 $482.00 million $2.28 9.32
Super Group $1.56 billion 1.97 $279.07 million N/A N/A

International Game Technology has higher revenue and earnings than Super Group.

Profitability

This table compares International Game Technology and Super Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
International Game Technology 11.37% 3.35% 0.57%
Super Group N/A 186.09% 41.47%

Analyst Recommendations

This is a summary of recent ratings and target prices for International Game Technology and Super Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
International Game Technology 0 0 5 0 3.00
Super Group 0 1 4 0 2.80

International Game Technology currently has a consensus target price of $40.80, suggesting a potential upside of 91.91%. Super Group has a consensus target price of $11.60, suggesting a potential upside of 81.82%. Given International Game Technology’s stronger consensus rating and higher possible upside, equities research analysts plainly believe International Game Technology is more favorable than Super Group.

Summary

International Game Technology beats Super Group on 9 of the 12 factors compared between the two stocks.

About International Game Technology (Get Rating)

International Game Technology PLC operates and provides gaming technology products and services in North America, Europe, the Middle East, Africa, Asia-Pacific, Latin America, and the Caribbean. It operates in three segments: Global Lottery, Global Gaming, and Digital & Betting. The company designs, sells, operates, and leases a suite of point-of-sale machines that reconciles lottery funds between the retailer and lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services. It also designs, develops, assembles, and provides cabinets, games, systems, and software for the gaming market, as well as offers gaming management systems for casino management, customer relationship management, patron management, and server-based gaming. In addition, the company provides video lottery terminals (VLT), VLT central systems, and VLT games. Further, it offers digital gaming and betting; sports betting; and technology and management services. Additionally, the company provides digital gaming products and services, including blackjack, roulette, slot games, poker, bingo, and other casino card games; social casino content; and remote game server, as well as iGaming systems and digital platforms that offer player account management, advanced marketing and analytical, and payment system services. It processes commercial transactions, such as prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, prepaid card recharges, and stamp duty and money transfer services. The company was formerly known as GTECH S.p.A. and changed its name to International Game Technology PLC in April 2015. The company was founded in 2014 and is headquartered in London, the United Kingdom. International Game Technology PLC is a subsidiary of De Agostini S.p.A.

About Super Group (Get Rating)

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. The company is based in Saint Peter Port, Guernsey.



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