Golden Matrix Group (NASDAQ:GMGI – Get Free Report) and Red Rock Resorts (NASDAQ:RRR – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.
Valuation and Earnings
This table compares Golden Matrix Group and Red Rock Resorts”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) | -16.86 |
| Red Rock Resorts | $1.94 billion | 2.99 | $154.05 million | $3.14 | 17.42 |
Profitability
This table compares Golden Matrix Group and Red Rock Resorts’ 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% |
| Red Rock Resorts | 9.52% | 59.86% | 4.80% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Golden Matrix Group and Red Rock Resorts, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Golden Matrix Group | 1 | 0 | 1 | 0 | 2.00 |
| Red Rock Resorts | 0 | 4 | 10 | 0 | 2.71 |
Golden Matrix Group currently has a consensus price target of $2.90, indicating a potential upside of 243.97%. Red Rock Resorts has a consensus price target of $64.55, indicating a potential upside of 17.98%. Given Golden Matrix Group’s higher probable upside, research analysts clearly believe Golden Matrix Group is more favorable than Red Rock Resorts.
Institutional and Insider Ownership
2.7% of Golden Matrix Group shares are held by institutional investors. Comparatively, 47.8% of Red Rock Resorts shares are held by institutional investors. 24.0% of Golden Matrix Group shares are held by company insiders. Comparatively, 53.3% of Red Rock Resorts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Golden Matrix Group has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, Red Rock Resorts has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.
Summary
Red Rock Resorts beats Golden Matrix Group on 13 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 Red Rock Resorts
Red Rock Resorts, Inc., through its interest in Station Casinos LLC, develops and operates casino and entertainment properties in the United States. The company owns and operates gaming and entertainment facilities, including Durango Casino & Resort and smaller casinos in the Las Vegas regional market. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016. Red Rock Resorts, Inc. was founded in 1976 and is based in Las Vegas, Nevada.
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