Comparing Golden Matrix Group (NASDAQ:GMGI) and Century Casinos (NASDAQ:CNTY)

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

Institutional & Insider Ownership

66.4% of Century Casinos shares are owned by institutional investors. Comparatively, 2.7% of Golden Matrix Group shares are owned by institutional investors. 13.0% of Century Casinos shares are owned by insiders. Comparatively, 24.0% of Golden Matrix Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Century Casinos	$575.92 million	0.08	-$128.17 million	($3.53)	-0.43
Golden Matrix Group	$151.12 million	0.60	-$1.48 million	($0.05)	-12.79

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Century Casinos	-18.92%	-165.48%	-5.44%
Golden Matrix Group	-3.00%	-3.69%	-2.06%

Risk and Volatility

Century Casinos has a beta of 1.95, suggesting that its stock price is 95% more 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 Ratings

This is a summary of recent recommendations and price targets for Century Casinos and Golden Matrix Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Century Casinos	1	0	4	0	2.60
Golden Matrix Group	1	0	1	0	2.00

Century Casinos presently has a consensus price target of $3.67, suggesting a potential upside of 139.65%. Golden Matrix Group has a consensus price target of $2.53, suggesting a potential upside of 296.08%. Given Golden Matrix Group’s higher possible upside, analysts clearly believe Golden Matrix Group is more favorable than Century Casinos.

Summary

Golden Matrix Group beats Century Casinos on 8 of the 14 factors compared between the two stocks.

About Century Casinos

Century Casinos, Inc. operates as a casino entertainment company in the United States, Canada, and Poland. It develops and operates gaming establishments, as well as related lodging, restaurant, and horse racing including, off-track betting; and entertainment facilities. The company was founded in 1992 and is based in Colorado Springs, Colorado.

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.