Golden Matrix Group (NASDAQ:GMGI – Get Free Report) and Light & Wonder (NASDAQ:LNW – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.
Volatility & Risk
Golden Matrix Group has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, Light & Wonder has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.
Insider and Institutional Ownership
2.7% of Golden Matrix Group shares are held by institutional investors. Comparatively, 88.1% of Light & Wonder shares are held by institutional investors. 24.0% of Golden Matrix Group shares are held by insiders. Comparatively, 2.2% of Light & Wonder shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Golden Matrix Group | 1 | 0 | 1 | 0 | 2.00 |
| Light & Wonder | 1 | 4 | 5 | 0 | 2.40 |
Golden Matrix Group currently has a consensus target price of $2.90, indicating a potential upside of 241.18%. Light & Wonder has a consensus target price of $105.00, indicating a potential upside of 15.21%. Given Golden Matrix Group’s higher probable upside, equities analysts plainly believe Golden Matrix Group is more favorable than Light & Wonder.
Valuation and Earnings
This table compares Golden Matrix Group and Light & Wonder”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Golden Matrix Group | $151.12 million | 0.79 | -$1.48 million | ($0.05) | -17.00 |
| Light & Wonder | $3.22 billion | 2.31 | $336.00 million | $4.59 | 19.86 |
Light & Wonder has higher revenue and earnings than Golden Matrix Group. Golden Matrix Group is trading at a lower price-to-earnings ratio than Light & Wonder, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Golden Matrix Group and Light & Wonder’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% |
| Light & Wonder | 10.89% | 71.17% | 8.73% |
Summary
Light & Wonder beats Golden Matrix Group on 12 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 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.
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