Financial Review: Golden Entertainment (NASDAQ:GDEN) vs. GCL Global (NASDAQ:GCL)

Golden Entertainment (NASDAQ:GDEN) and GCL Global (NASDAQ:GCL) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Golden Entertainment and GCL Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Entertainment	0	2	5	0	2.71
GCL Global	0	0	0	0	0.00

Golden Entertainment presently has a consensus target price of $35.3333, suggesting a potential upside of 45.05%. Given Golden Entertainment’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Golden Entertainment is more favorable than GCL Global.

Earnings & Valuation

This table compares Golden Entertainment and GCL Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golden Entertainment	$649.90 million	0.98	$50.73 million	$0.54	45.11
GCL Global	$142.07 million	3.23	$5.59 million	N/A	N/A

Golden Entertainment has higher revenue and earnings than GCL Global.

Profitability

This table compares Golden Entertainment and GCL Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Golden Entertainment	2.35%	3.23%	1.43%
GCL Global	N/A	N/A	N/A

Volatility & Risk

Golden Entertainment has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, GCL Global has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Insider and Institutional Ownership

70.7% of Golden Entertainment shares are held by institutional investors. Comparatively, 36.6% of GCL Global shares are held by institutional investors. 30.5% of Golden Entertainment shares are held by insiders. Comparatively, 49.4% of GCL Global shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Golden Entertainment beats GCL Global on 10 of the 12 factors compared between the two stocks.

About Golden Entertainment

Golden Entertainment, Inc. owns and operates a diversified entertainment platform in the United States. The company operates through four segments; Nevada Casino Resorts, Nevada Locals Casinos, Nevada Taverns, and Distributed Gaming. It also operates casino, casino resorts, and taverns; and slot machines in third party non-casino locations. The company was incorporated in 1998 and is headquartered in Las Vegas, Nevada.

About GCL Global

GCL Global Holdings Ltd. unites people through immersive games and entertainment experiences, enabling creators to deliver engaging content and fun gameplay experiences to gaming communities worldwide with a strategic focus on the rapidly expanding Asian gaming market.

Drawing on a deep understanding of gaming trends and market dynamics, GCL Group leverages its diverse portfolio of digital and physical content to bridge cultures and audiences by introducing Asian-developed IP to a global audience across consoles, PCs, and streaming platforms.