Comparing Century Casinos (NASDAQ:CNTY) and Golden Matrix Group (NASDAQ:GMGI)

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

Earnings & Valuation

This table compares Golden Matrix Group and Century Casinos”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golden Matrix Group	$151.12 million	0.58	-$1.48 million	($0.05)	-12.40
Century Casinos	$575.92 million	0.08	-$128.17 million	($3.53)	-0.42

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

Profitability

This table compares Golden Matrix Group and Century Casinos’ 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%
Century Casinos	-18.92%	-165.48%	-5.44%

Institutional & Insider Ownership

2.7% of Golden Matrix Group shares are held by institutional investors. Comparatively, 66.4% of Century Casinos shares are held by institutional investors. 24.0% of Golden Matrix Group shares are held by insiders. Comparatively, 13.0% of Century Casinos shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Golden Matrix Group has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Century Casinos has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Golden Matrix Group and Century Casinos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Matrix Group	1	0	1	0	2.00
Century Casinos	1	0	4	0	2.60

Golden Matrix Group currently has a consensus target price of $2.53, suggesting a potential upside of 308.60%. Century Casinos has a consensus target price of $3.67, suggesting a potential upside of 144.44%. Given Golden Matrix Group’s higher probable upside, equities research analysts plainly believe Golden Matrix Group is more favorable than Century Casinos.

Summary

Golden Matrix Group beats Century Casinos on 8 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 Century Casinos

Century Casinos, Inc. operates as a casino entertainment company in the United States, Canada, and Poland. It develops and operates gaming establishments, as well as related lodging, restaurant, and horse racing including, off-track betting; and entertainment facilities. The company was founded in 1992 and is based in Colorado Springs, Colorado.