Critical Review: Golden Matrix Group (NASDAQ:GMGI) versus Sprinklr (NYSE:CXM)

Golden Matrix Group (NASDAQ:GMGI) and Sprinklr (NYSE:CXM) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Valuation & Earnings

This table compares Golden Matrix Group and Sprinklr”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golden Matrix Group	$45.24 million	6.24	N/A	N/A	N/A
Sprinklr	$788.06 million	2.77	$51.40 million	$0.16	53.69

Sprinklr has higher revenue and earnings than Golden Matrix Group.

Volatility and Risk

Golden Matrix Group has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Sprinklr has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Institutional and Insider Ownership

2.7% of Golden Matrix Group shares are held by institutional investors. Comparatively, 40.2% of Sprinklr shares are held by institutional investors. 23.2% of Golden Matrix Group shares are held by company insiders. Comparatively, 30.1% of Sprinklr shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Golden Matrix Group and Sprinklr, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Matrix Group	0	0	0	0	0.00
Sprinklr	2	8	4	0	2.14

Sprinklr has a consensus target price of $10.13, indicating a potential upside of 17.87%. Given Sprinklr’s stronger consensus rating and higher probable upside, analysts clearly believe Sprinklr is more favorable than Golden Matrix Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Golden Matrix Group	-3.07%	-3.93%	-2.11%
Sprinklr	5.59%	7.84%	4.11%

Summary

Sprinklr beats Golden Matrix Group on 10 of the 11 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 Sprinklr

Sprinklr, Inc. provides enterprise cloud software products worldwide. The company operates Unified Customer Experience Management platform, a software that enables customer-facing teams to collaborate across internal silos, communicate across digital channels, and leverage a complete suite of capabilities to deliver customer experiences. Its products include Sprinklr Service, a suite of artificial intelligence (AI) powered products and solutions that unifies customer service across voice, digital, and social channels; Sprinklr Social, a suite of AI-powered products and solutions that unifies social media publishing and engagement across various channels; Sprinklr Insights, a suite of AI-powered products and solutions that unifies consumer, customer, competitive and industry data from a high volume of third-party, second-party and first-party sources; and Sprinklr Marketing, a suite of AI-powered products and solutions that unifies content production and content lifecycle management with paid campaign orchestration across various channels. The company also provides professional, managed, training, and consultancy services. Sprinklr, Inc. was founded in 2009 and is headquartered in New York, New York.