Boyd Gaming (NYSE:BYD – Get Free Report) and Golden Matrix Group (NASDAQ:GMGI – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.
Profitability
This table compares Boyd Gaming and Golden Matrix Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Boyd Gaming | 45.05% | 30.14% | 9.26% |
| Golden Matrix Group | -3.00% | -3.69% | -2.06% |
Institutional & Insider Ownership
76.8% of Boyd Gaming shares are owned by institutional investors. Comparatively, 2.7% of Golden Matrix Group shares are owned by institutional investors. 22.8% of Boyd Gaming shares are owned by insiders. Comparatively, 24.0% of Golden Matrix Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Boyd Gaming | $4.09 billion | 1.58 | $1.84 billion | $22.75 | 3.78 |
| Golden Matrix Group | $179.14 million | 5.40 | -$1.48 million | ($0.05) | -137.00 |
Boyd Gaming has higher revenue and earnings than Golden Matrix Group. Golden Matrix Group is trading at a lower price-to-earnings ratio than Boyd Gaming, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Boyd Gaming has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Golden Matrix Group has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Boyd Gaming and Golden Matrix Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Boyd Gaming | 0 | 9 | 5 | 0 | 2.36 |
| Golden Matrix Group | 1 | 0 | 0 | 0 | 1.00 |
Boyd Gaming currently has a consensus price target of $92.50, suggesting a potential upside of 7.61%. Golden Matrix Group has a consensus price target of $21.60, suggesting a potential upside of 215.33%. Given Golden Matrix Group’s higher possible upside, analysts clearly believe Golden Matrix Group is more favorable than Boyd Gaming.
Summary
Boyd Gaming beats Golden Matrix Group on 11 of the 14 factors compared between the two stocks.
About Boyd Gaming
Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The company operates through Las Vegas Locals, Downtown Las Vegas, Midwest & South, and Online segments. It also engages in owning and operating a travel agency. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.
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.
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