Head to Head Review: Wendy’s (NASDAQ:WEN) vs. Super Group (SGHC) (NYSE:SGHC)

Super Group (SGHC) (NYSE:SGHC) and Wendy’s (NASDAQ:WEN) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Risk and Volatility

Super Group (SGHC) has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Wendy’s has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

Insider & Institutional Ownership

5.1% of Super Group (SGHC) shares are owned by institutional investors. Comparatively, 86.0% of Wendy’s shares are owned by institutional investors. 10.4% of Super Group (SGHC) shares are owned by insiders. Comparatively, 17.1% of Wendy’s 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.

Earnings and Valuation

This table compares Super Group (SGHC) and Wendy’s”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Super Group (SGHC)	$2.23 billion	2.48	$217.00 million	$0.72	15.20
Wendy’s	$2.18 billion	0.59	$165.07 million	$0.66	10.12

Super Group (SGHC) has higher revenue and earnings than Wendy’s. Wendy’s 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 Wendy’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%
Wendy’s	5.72%	115.31%	2.70%

Dividends

Super Group (SGHC) pays an annual dividend of $0.20 per share and has a dividend yield of 1.8%. Wendy’s pays an annual dividend of $0.28 per share and has a dividend yield of 4.2%. Super Group (SGHC) pays out 27.8% of its earnings in the form of a dividend. Wendy’s pays out 42.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a summary of current ratings and price targets for Super Group (SGHC) and Wendy’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Group (SGHC)	0	2	6	0	2.75
Wendy’s	5	12	2	0	1.84

Super Group (SGHC) currently has a consensus target price of $19.00, suggesting a potential upside of 73.60%. Wendy’s has a consensus target price of $7.69, suggesting a potential upside of 15.14%. Given Super Group (SGHC)’s stronger consensus rating and higher possible upside, equities analysts plainly believe Super Group (SGHC) is more favorable than Wendy’s.

Summary

Super Group (SGHC) beats Wendy’s on 12 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 Wendy’s

The Wendy’s Co. engages in operating, developing, and franchising a system of quick-service restaurants. It operates through the following segments: Wendy’s U.S., Wendy’s International, and Global Real Estate and Development. The Wendy’s U.S. segment includes the operation and franchising of Wendy’s restaurants in the U.S. The Wendy’s International segment is involved in the operation and franchising of Wendy’s restaurants in countries and territories other than the U.S. The Global Real Estate and Development segment focuses on real estate activity for owned sites and sites leased from third parties. The company was founded by R. David Thomas on November 15, 1969 and is headquartered in Dublin, OH.