Golden Matrix Group (NASDAQ:GMGI) & Churchill Downs (NASDAQ:CHDN) Head to Head Comparison

Churchill Downs (NASDAQ:CHDN) and Golden Matrix Group (NASDAQ:GMGI) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Risk and Volatility

Churchill Downs has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Golden Matrix Group has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Churchill Downs	13.09%	43.26%	6.06%
Golden Matrix Group	-3.00%	-3.69%	-2.06%

Insider and Institutional Ownership

82.6% of Churchill Downs shares are owned by institutional investors. Comparatively, 2.7% of Golden Matrix Group shares are owned by institutional investors. 5.9% of Churchill Downs shares are owned by company insiders. Comparatively, 24.0% of Golden Matrix Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Churchill Downs and Golden Matrix Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Churchill Downs	0	1	11	0	2.92
Golden Matrix Group	1	0	0	0	1.00

Churchill Downs currently has a consensus target price of $135.60, suggesting a potential upside of 49.27%. Golden Matrix Group has a consensus target price of $21.60, suggesting a potential upside of 247.27%. Given Golden Matrix Group’s higher possible upside, analysts plainly believe Golden Matrix Group is more favorable than Churchill Downs.

Valuation & Earnings

This table compares Churchill Downs and Golden Matrix Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Churchill Downs	$2.93 billion	2.16	$383.00 million	$5.26	17.27
Golden Matrix Group	$179.14 million	4.90	-$1.48 million	($0.05)	-124.40

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

Summary

Churchill Downs beats Golden Matrix Group on 11 of the 14 factors compared between the two stocks.

About Churchill Downs

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.

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.