Critical Analysis: GCL Global (NASDAQ:GCL) vs. Golden Entertainment (NASDAQ:GDEN)

Golden Entertainment (NASDAQ:GDEN) and GCL Global (NASDAQ:GCL) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Insider and Institutional Ownership

70.7% of Golden Entertainment shares are owned by institutional investors. Comparatively, 36.6% of GCL Global shares are owned by institutional investors. 29.1% of Golden Entertainment shares are owned by company insiders. Comparatively, 49.4% of GCL Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Golden Entertainment has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500. Comparatively, GCL Global has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Earnings & Valuation

This table compares Golden Entertainment and GCL Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golden Entertainment	$666.82 million	0.97	$50.73 million	$0.54	45.80
GCL Global	$142.07 million	3.12	$5.59 million	N/A	N/A

Golden Entertainment has higher revenue and earnings than GCL Global.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Golden Entertainment and GCL Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Entertainment	0	2	5	0	2.71
GCL Global	0	0	0	0	0.00

Golden Entertainment currently has a consensus target price of $35.3333, indicating a potential upside of 42.88%. Given Golden Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Golden Entertainment is more favorable than GCL Global.

Profitability

This table compares Golden Entertainment and GCL Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Golden Entertainment	2.35%	3.23%	1.43%
GCL Global	N/A	N/A	N/A

Summary

Golden Entertainment beats GCL Global on 10 of the 12 factors compared between the two stocks.

About Golden Entertainment

Golden Entertainment, Inc. owns and operates a diversified entertainment platform in the United States. The company operates through four segments; Nevada Casino Resorts, Nevada Locals Casinos, Nevada Taverns, and Distributed Gaming. It also operates casino, casino resorts, and taverns; and slot machines in third party non-casino locations. The company was incorporated in 1998 and is headquartered in Las Vegas, Nevada.

About GCL Global

GCL Global Holdings Ltd. unites people through immersive games and entertainment experiences, enabling creators to deliver engaging content and fun gameplay experiences to gaming communities worldwide with a strategic focus on the rapidly expanding Asian gaming market.

Drawing on a deep understanding of gaming trends and market dynamics, GCL Group leverages its diverse portfolio of digital and physical content to bridge cultures and audiences by introducing Asian-developed IP to a global audience across consoles, PCs, and streaming platforms.