Reviewing MGM Resorts International (NYSE:MGM) & Golden Matrix Group (NASDAQ:GMGI)

Golden Matrix Group (NASDAQ:GMGI) and MGM Resorts International (NYSE:MGM) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Golden Matrix Group and MGM Resorts International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Matrix Group	1	0	1	0	2.00
MGM Resorts International	4	8	8	1	2.29

Golden Matrix Group currently has a consensus price target of $2.53, indicating a potential upside of 287.00%. MGM Resorts International has a consensus price target of $41.94, indicating a potential upside of 22.97%. Given Golden Matrix Group’s higher probable upside, research analysts clearly believe Golden Matrix Group is more favorable than MGM Resorts International.

Insider & Institutional Ownership

2.7% of Golden Matrix Group shares are owned by institutional investors. Comparatively, 68.1% of MGM Resorts International shares are owned by institutional investors. 24.0% of Golden Matrix Group shares are owned by insiders. Comparatively, 3.1% of MGM Resorts International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Golden Matrix Group and MGM Resorts International”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	0.61	-$1.48 million	($0.05)	-13.09
MGM Resorts International	$17.54 billion	0.50	$205.86 million	$0.75	45.47

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

Volatility and Risk

Golden Matrix Group has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, MGM Resorts International has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Profitability

This table compares Golden Matrix Group and MGM Resorts International’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%
MGM Resorts International	1.17%	26.04%	2.19%

Summary

MGM Resorts International 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 MGM Resorts International

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.