Head-To-Head Comparison: Golden Matrix Group (NASDAQ:GMGI) versus Nintendo (OTCMKTS:NTDOY)

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Golden Matrix Group and Nintendo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Matrix Group	1	0	1	0	2.00
Nintendo	1	1	2	1	2.60

Golden Matrix Group presently has a consensus target price of $2.53, suggesting a potential upside of 204.12%. Given Golden Matrix Group’s higher probable upside, equities research analysts clearly believe Golden Matrix Group is more favorable than Nintendo.

Volatility & Risk

Golden Matrix Group has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, Nintendo has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Insider & Institutional Ownership

2.7% of Golden Matrix Group shares are held by institutional investors. Comparatively, 0.0% of Nintendo shares are held by institutional investors. 24.0% of Golden Matrix Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Golden Matrix Group and Nintendo’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%
Nintendo	21.10%	12.26%	9.65%

Valuation and Earnings

This table compares Golden Matrix Group and Nintendo”s 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	0.78	-$1.48 million	($0.05)	-16.66
Nintendo	$7.65 billion	11.99	$1.84 billion	$0.53	33.30

Nintendo has higher revenue and earnings than Golden Matrix Group. Golden Matrix Group is trading at a lower price-to-earnings ratio than Nintendo, indicating that it is currently the more affordable of the two stocks.

Summary

Nintendo beats Golden Matrix Group on 12 of the 15 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 Nintendo

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It also offers video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware systems and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is headquartered in Kyoto, Japan.