Golden Matrix Group (NASDAQ:GMGI – Get Free Report) and Churchill Downs (NASDAQ:CHDN – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Analyst Ratings
This is a summary of current ratings and recommmendations for Golden Matrix Group and Churchill Downs, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Golden Matrix Group | 1 | 0 | 0 | 0 | 1.00 |
| Churchill Downs | 0 | 1 | 11 | 0 | 2.92 |
Golden Matrix Group currently has a consensus price target of $21.60, indicating a potential upside of 238.03%. Churchill Downs has a consensus price target of $135.60, indicating a potential upside of 47.06%. Given Golden Matrix Group’s higher possible upside, equities research analysts plainly believe Golden Matrix Group is more favorable than Churchill Downs.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Golden Matrix Group | -3.00% | -3.69% | -2.06% |
| Churchill Downs | 13.09% | 43.26% | 6.06% |
Institutional & Insider Ownership
2.7% of Golden Matrix Group shares are held by institutional investors. Comparatively, 82.6% of Churchill Downs shares are held by institutional investors. 24.0% of Golden Matrix Group shares are held by insiders. Comparatively, 5.9% of Churchill Downs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Golden Matrix Group has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.
Earnings & Valuation
This table compares Golden Matrix Group and Churchill Downs”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Golden Matrix Group | $179.14 million | 5.04 | -$1.48 million | ($0.05) | -127.80 |
| Churchill Downs | $2.93 billion | 2.20 | $383.00 million | $5.26 | 17.53 |
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 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 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.
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