Contrasting Golden Matrix Group (NASDAQ:GMGI) and MGM Resorts International (NYSE:MGM)

Golden Matrix Group (NASDAQ:GMGIGet Free Report) and MGM Resorts International (NYSE:MGMGet Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Insider and Institutional Ownership

2.7% of Golden Matrix Group shares are held by institutional investors. Comparatively, 68.1% of MGM Resorts International shares are held by institutional investors. 24.0% of Golden Matrix Group shares are held by company insiders. Comparatively, 3.1% of MGM Resorts International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Golden Matrix Group and MGM Resorts International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golden Matrix Group 1 0 1 0 2.00
MGM Resorts International 4 7 8 1 2.30

Golden Matrix Group presently has a consensus target price of $2.53, suggesting a potential upside of 355.96%. MGM Resorts International has a consensus target price of $41.94, suggesting a potential upside of 14.99%. Given Golden Matrix Group’s higher probable upside, analysts plainly believe Golden Matrix Group is more favorable than MGM Resorts International.

Valuation and Earnings

This table compares Golden Matrix Group and MGM Resorts International”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Golden Matrix Group $151.12 million 0.52 -$1.48 million ($0.05) -11.11
MGM Resorts International $17.54 billion 0.53 $205.86 million $0.75 48.63

MGM Resorts International has higher revenue and earnings than Golden Matrix Group. Golden Matrix Group is trading at a lower price-to-earnings ratio than MGM Resorts International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Golden Matrix Group and MGM Resorts International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Golden Matrix Group -3.00% -3.69% -2.06%
MGM Resorts International 1.17% 26.04% 2.19%

Risk and Volatility

Golden Matrix Group has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, MGM Resorts International has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Summary

MGM Resorts International beats Golden Matrix Group on 13 of the 15 factors compared between the two stocks.

About Golden Matrix Group

(Get Free Report)

Golden Matrix Group, Inc. provides enterprise software-as-a-service solutions for online casino and sports betting operators. The company develops and owns online gaming intellectual property; and builds gaming platforms for customers located primarily in the Asia Pacific region. Its platform facilitates gaming customers in operating online casinos, sportsbooks, lottery, and live games; and provides customers with access to a portfolio of licensed gaming content, which are provided by gaming content providers. The company also provides services and resells third party gaming content to licensed online gaming distributors. Its platform is accessed through desktop and mobile applications. The company was formerly known as Source Gold Corp. and changed its name to Golden Matrix Group, Inc. in April 2016. Golden Matrix Group, Inc. was incorporated in 2008 and is based in Las Vegas, Nevada.

About MGM Resorts International

(Get Free Report)

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.

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