Red Cat (NASDAQ:RCAT – Get Free Report) and Golden Matrix Group (NASDAQ:GMGI – Get Free Report) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.
Valuation and Earnings
This table compares Red Cat and Golden Matrix Group”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Red Cat | $17.84 million | 38.01 | -$24.05 million | ($0.54) | -15.67 |
Golden Matrix Group | $44.17 million | 5.98 | N/A | N/A | N/A |
Golden Matrix Group has higher revenue and earnings than Red Cat.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Red Cat | 0 | 0 | 1 | 0 | 3.00 |
Golden Matrix Group | 0 | 0 | 0 | 0 | 0.00 |
Red Cat presently has a consensus price target of $4.00, indicating a potential downside of 52.72%. Given Red Cat’s stronger consensus rating and higher possible upside, research analysts clearly believe Red Cat is more favorable than Golden Matrix Group.
Profitability
This table compares Red Cat and Golden Matrix Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Red Cat | -232.62% | -96.00% | -75.95% |
Golden Matrix Group | -3.07% | -3.93% | -2.11% |
Volatility and Risk
Red Cat has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Golden Matrix Group has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.
Institutional and Insider Ownership
38.0% of Red Cat shares are held by institutional investors. Comparatively, 2.7% of Golden Matrix Group shares are held by institutional investors. 21.5% of Red Cat shares are held by company insiders. Comparatively, 23.2% of Golden Matrix Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Red Cat beats Golden Matrix Group on 6 of the 11 factors compared between the two stocks.
About Red Cat
Red Cat Holdings, Inc. engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment. Red Cat Holdings, Inc. is based in San Juan, Puerto Rico.
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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