Light & Wonder (NASDAQ:LNW – Get Free Report) and Golden Matrix Group (NASDAQ:GMGI – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares Light & Wonder and Golden Matrix Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Light & Wonder | $3.22 billion | 2.31 | $336.00 million | $4.59 | 19.86 |
| Golden Matrix Group | $151.12 million | 0.74 | -$1.48 million | ($0.05) | -15.90 |
Risk & Volatility
Light & Wonder has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Golden Matrix Group has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.
Institutional & Insider Ownership
88.1% of Light & Wonder shares are held by institutional investors. Comparatively, 2.7% of Golden Matrix Group shares are held by institutional investors. 2.2% of Light & Wonder shares are held by company insiders. Comparatively, 24.0% of Golden Matrix Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Light & Wonder and Golden Matrix Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Light & Wonder | 10.89% | 71.17% | 8.73% |
| Golden Matrix Group | -3.00% | -3.69% | -2.06% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Light & Wonder and Golden Matrix Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Light & Wonder | 1 | 4 | 5 | 0 | 2.40 |
| Golden Matrix Group | 1 | 0 | 1 | 0 | 2.00 |
Light & Wonder presently has a consensus target price of $105.00, indicating a potential upside of 15.21%. Golden Matrix Group has a consensus target price of $2.90, indicating a potential upside of 264.78%. Given Golden Matrix Group’s higher probable upside, analysts clearly believe Golden Matrix Group is more favorable than Light & Wonder.
Summary
Light & Wonder beats Golden Matrix Group on 12 of the 14 factors compared between the two stocks.
About Light & Wonder
Light & Wonder, Inc. is a cross-platform global games company, which engages in the development of content and digital markets. It operates through the following segments: Gaming, SciPlay, and iGaming. The Gaming segment includes the design, manufacture, marketing, and distribution of portfolio of gaming products and services. The SciPlay segment involves the development and publishing of digital games on mobile and web platforms. The iGaming segment focuses on the provision of digital gaming content, distribution platforms, player account management systems, and services. The company was founded on July 2, 1984 and is headquartered in Las Vegas, NV.
About Golden Matrix Group
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.
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