Financial Review: Golden Matrix Group (NASDAQ:GMGI) versus authID (NASDAQ:AUID)

Golden Matrix Group (NASDAQ:GMGI) and authID (NASDAQ:AUID) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Golden Matrix Group and authID, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Matrix Group	0	0	0	0	N/A
authID	0	0	0	0	N/A

Risk and Volatility

Golden Matrix Group has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, authID has a beta of 2.21, suggesting that its share price is 121% more volatile than the S&P 500.

Valuation & Earnings

This table compares Golden Matrix Group and authID’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golden Matrix Group	$44.17 million	3.40	-$1.17 million	($0.02)	-205.00
authID	$190,000.00	391.93	-$19.40 million	N/A	N/A

Golden Matrix Group has higher revenue and earnings than authID.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Golden Matrix Group	-1.45%	-2.10%	-1.84%
authID	-10,210.53%	-299.79%	-184.25%

Institutional & Insider Ownership

2.7% of Golden Matrix Group shares are owned by institutional investors. Comparatively, 8.8% of authID shares are owned by institutional investors. 54.2% of Golden Matrix Group shares are owned by company insiders. Comparatively, 7.4% of authID shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Golden Matrix Group beats authID on 6 of the 9 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 authID

authID Inc. provides secure, biometric, identity verification, and strong passwordless and biometric authentication for consumer and workforce applications worldwide. The company offers solutions through its Verified platform to enable their users to easily verify and authenticate their identity through a mobile device or desktop. It provides Biometric Identity Verification, which establishes the trusted identity of users based on a variety of ground truth sources, including chip-based electronic machine-readable travel documents, national IDs, and driver's licenses; Human Factor Authentication that delivers trusted FIDO2 strong authentication for device-based passwordless login and transaction authentication that is tied to a trusted identity; Cloud-Based Biometric Multi-Factor Authentication, which provides any bank, enterprise, or government department a secure and convenient application for identity verification and transaction consent as part of any type of electronic transaction; and Identity – Portal that enables enterprises to get started with its identity products without any integration. The company also offers SEARCH, a biometric matching software for desktop fingerprint capture and image processing. The company was formerly known as Ipsidy Inc. and changed its name to authID Inc. authID Inc. was founded in 2009 and is headquartered in Denver, Colorado.