Comparing Gaxos.ai (NASDAQ:GXAI) and Golden Matrix Group (NASDAQ:GMGI)

Gaxos.ai (NASDAQ:GXAI) and Golden Matrix Group (NASDAQ:GMGI) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gaxos.ai	-549.60%	-25.08%	-24.33%
Golden Matrix Group	-3.00%	-3.69%	-2.06%

Risk & Volatility

Gaxos.ai has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Golden Matrix Group has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.

Institutional & Insider Ownership

42.6% of Gaxos.ai shares are owned by institutional investors. Comparatively, 2.7% of Golden Matrix Group shares are owned by institutional investors. 3.5% of Gaxos.ai 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 company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Gaxos.ai and Golden Matrix Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaxos.ai	1	0	0	0	1.00
Golden Matrix Group	1	0	1	0	2.00

Golden Matrix Group has a consensus target price of $2.53, suggesting a potential upside of 246.04%. Given Golden Matrix Group’s stronger consensus rating and higher probable upside, analysts clearly believe Golden Matrix Group is more favorable than Gaxos.ai.

Valuation and Earnings

This table compares Gaxos.ai and Golden Matrix Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gaxos.ai	$694,278.00	12.41	-$3.42 million	($0.42)	-2.88
Golden Matrix Group	$151.12 million	0.68	-$1.48 million	($0.05)	-14.64

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

Summary

Golden Matrix Group beats Gaxos.ai on 10 of the 14 factors compared between the two stocks.

About Gaxos.ai

Gaxos.ai Inc. engages in developing artificial intelligence applications for various sectors. Its portfolio includes applications in mental and physical wellbeing, coaching, and gaming. In addition, it offers Gaxos, a gaming platform develop, design, acquire, and manage conventional games and combine these games with unconventional game mechanisms. The company was formerly known as The NFT Gaming Company, Inc. and changed its name to Gaxos.ai Inc. in January 2024. Gaxos.ai Inc. was incorporated in 2021 and is based in Roseland, New Jersey.

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.