Capcom (OTCMKTS:CCOEY – Get Free Report) and Golden Matrix Group (NASDAQ:GMGI – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Volatility and Risk
Capcom has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Golden Matrix Group has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Capcom and Golden Matrix Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Capcom | 0 | 0 | 1 | 0 | 3.00 |
| Golden Matrix Group | 0 | 0 | 1 | 0 | 3.00 |
Valuation & Earnings
This table compares Capcom and Golden Matrix Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Capcom | $1.11 billion | 13.51 | $319.78 million | $0.44 | 32.07 |
| Golden Matrix Group | $172.82 million | 0.90 | -$1.48 million | ($0.08) | -13.88 |
Capcom has higher revenue and earnings than Golden Matrix Group. Golden Matrix Group is trading at a lower price-to-earnings ratio than Capcom, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
2.7% of Golden Matrix Group shares are held by institutional investors. 24.0% of Golden Matrix Group shares are held by company 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.
Profitability
This table compares Capcom and Golden Matrix Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Capcom | 30.10% | 26.91% | 20.87% |
| Golden Matrix Group | -5.41% | -7.50% | -3.92% |
Summary
Capcom beats Golden Matrix Group on 9 of the 12 factors compared between the two stocks.
About Capcom
Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of software, frames and LCD devices for gaming machines. The Other Businesses segment engages in the adapting game content into movies, animated television programs, music CDs, and merchandise; and devoting resources to esports. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.
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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