Comparing Golden Matrix Group (NASDAQ:GMGI) and Hitek Global (NASDAQ:HKIT)

Golden Matrix Group (NASDAQ:GMGI) and Hitek Global (NASDAQ:HKIT) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Earnings & Valuation

This table compares Golden Matrix Group and Hitek Global’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golden Matrix Group	$45.24 million	2.09	-$1.17 million	($0.02)	-129.00
Hitek Global	$4.56 million	4.79	$1.05 million	N/A	N/A

Hitek Global has lower revenue, but higher earnings than Golden Matrix Group.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Golden Matrix Group and Hitek Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Matrix Group	0	0	0	0	N/A
Hitek Global	0	0	0	0	N/A

Insider & Institutional Ownership

2.7% of Golden Matrix Group shares are owned by institutional investors. Comparatively, 1.2% of Hitek Global shares are owned by institutional investors. 54.2% of Golden Matrix Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Golden Matrix Group and Hitek Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Golden Matrix Group	-1.45%	-2.10%	-1.84%
Hitek Global	N/A	N/A	N/A

Risk & Volatility

Golden Matrix Group has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Hitek Global has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500.

Summary

Hitek Global beats Golden Matrix Group on 6 of the 9 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 Hitek Global

Hitek Global Inc. provides information technology (IT) consulting and solutions to small and medium businesses in various industry sectors in China. It offers anti-counterfeiting tax control system (ACTCS) tax devices, including golden tax disk and printers, ACTCS services, and IT services; and sells software and hardware to large businesses, such as laptops, printers, desktop computers, and related accessories, as well as Internet servers, cameras, and monitors. The company was founded in 1996 and is headquartered in Xiamen, China.