Golden Matrix Group (NASDAQ:GMGI – Get Free Report) and PLAYSTUDIOS (NASDAQ:MYPS – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.
Profitability
This table compares Golden Matrix Group and PLAYSTUDIOS’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% |
| PLAYSTUDIOS | -12.18% | -10.75% | -8.43% |
Volatility and Risk
Golden Matrix Group has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Golden Matrix Group | 1 | 0 | 0 | 0 | 1.00 |
| PLAYSTUDIOS | 1 | 2 | 1 | 0 | 2.00 |
Golden Matrix Group currently has a consensus price target of $21.60, suggesting a potential upside of 197.11%. PLAYSTUDIOS has a consensus price target of $1.25, suggesting a potential upside of 178.27%. Given Golden Matrix Group’s higher possible upside, research analysts plainly believe Golden Matrix Group is more favorable than PLAYSTUDIOS.
Valuation and Earnings
This table compares Golden Matrix Group and PLAYSTUDIOS”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Golden Matrix Group | $179.14 million | 5.73 | -$1.48 million | ($0.05) | -145.40 |
| PLAYSTUDIOS | $235.10 million | 0.25 | -$28.64 million | ($0.22) | -2.04 |
Golden Matrix Group has higher earnings, but lower revenue than PLAYSTUDIOS. Golden Matrix Group is trading at a lower price-to-earnings ratio than PLAYSTUDIOS, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
2.7% of Golden Matrix Group shares are held by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are held by institutional investors. 24.0% of Golden Matrix Group shares are held by insiders. Comparatively, 14.7% of PLAYSTUDIOS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Golden Matrix Group beats PLAYSTUDIOS on 8 of the 14 factors compared between the two stocks.
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.
About PLAYSTUDIOS
PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.
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