Critical Analysis: Alarum Technologies (NASDAQ:ALAR) versus Golden Matrix Group (NASDAQ:GMGI)

Alarum Technologies (NASDAQ:ALAR) and Golden Matrix Group (NASDAQ:GMGI) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Risk and Volatility

Alarum Technologies has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Golden Matrix Group has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Alarum Technologies and Golden Matrix Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarum Technologies	0	0	3	0	3.00
Golden Matrix Group	0	0	0	0	0.00

Alarum Technologies currently has a consensus price target of $30.00, indicating a potential upside of 127.45%. Given Alarum Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Alarum Technologies is more favorable than Golden Matrix Group.

Valuation & Earnings

This table compares Alarum Technologies and Golden Matrix Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarum Technologies	$26.52 million	3.42	-$5.53 million	$0.78	16.91
Golden Matrix Group	$44.17 million	7.92	N/A	N/A	N/A

Golden Matrix Group has higher revenue and earnings than Alarum Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alarum Technologies	12.70%	54.68%	35.55%
Golden Matrix Group	1.31%	2.65%	1.65%

Institutional & Insider Ownership

3.2% of Alarum Technologies shares are owned by institutional investors. Comparatively, 2.7% of Golden Matrix Group shares are owned by institutional investors. 2.7% of Alarum Technologies shares are owned by insiders. Comparatively, 23.2% 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.

Summary

Alarum Technologies beats Golden Matrix Group on 8 of the 11 factors compared between the two stocks.

About Alarum Technologies

Alarum Technologies Ltd. provides internet access and web data collection solutions in North, South, and Central America, Europe, Southeast Asia, the Middle East, and Africa. The company operates through two segments, Enterprise Internet Access Solutions and Consumer Internet Access Solutions. The company offers security blanket against ransomware, viruses, phishing, and other online threats, as well as secured and encrypted connection, masking the customers online activity and keeping them safe from hackers. It also provides privacy solutions and services, a software solution that uses an encryption protocol which is defined upon the process being used to generate a secured encrypted path and keep the users' data private and safe; and web data collection solution allows organizations to collect vast amounts of web and internet data by simultaneously connecting to the Internet from different IP addresses. In addition, the company offers static residential proxy network, rotating residential proxy network, data center proxy network, premium dedicated static residential proxies, mobile proxies, SERP data collection service, and social data collection service, as well as advertising services to enterprise customers. The company offers its products through resellers and internet service providers. It serves advertising and media companies, financial organizations, cyber security companies, industrial and commercial companies, online companies, education institutions, and AI recruitment market and other sectors. The company was formerly known as Safe-T Group Ltd. and changed its name to Alarum Technologies Ltd. in January 2023. Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv, Israel.

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.