Head-To-Head Comparison: Golden Matrix Group (NASDAQ:GMGI) and Electronic Arts (NASDAQ:EA)

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

Profitability

This table compares Golden Matrix Group and Electronic Arts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Golden Matrix Group	-5.41%	-7.50%	-3.92%
Electronic Arts	13.94%	18.43%	9.93%

Insider and Institutional Ownership

2.7% of Golden Matrix Group shares are owned by institutional investors. Comparatively, 90.2% of Electronic Arts shares are owned by institutional investors. 24.0% of Golden Matrix Group shares are owned by company insiders. Comparatively, 0.2% of Electronic Arts shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Golden Matrix Group has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Golden Matrix Group and Electronic Arts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Matrix Group	1	0	1	0	2.00
Electronic Arts	1	25	4	1	2.16

Golden Matrix Group presently has a consensus target price of $4.00, suggesting a potential upside of 306.09%. Electronic Arts has a consensus target price of $177.00, suggesting a potential downside of 11.63%. Given Golden Matrix Group’s higher probable upside, equities research analysts clearly believe Golden Matrix Group is more favorable than Electronic Arts.

Earnings and Valuation

This table compares Golden Matrix Group and Electronic Arts”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	$151.12 million	0.91	-$1.48 million	($0.08)	-12.31
Electronic Arts	$7.46 billion	6.72	$1.12 billion	$3.99	50.20

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

Summary

Electronic Arts beats Golden Matrix Group on 13 of the 15 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 Electronic Arts

Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands. The company licenses its games to third parties to distribute and host its games. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.