GameStop (GME) versus Its Rivals Head to Head Analysis

GameStop (NYSE:GME) is one of 66 publicly-traded companies in the “GAMING” industry, but how does it contrast to its competitors? We will compare GameStop to similar businesses based on the strength of its risk, profitability, analyst recommendations, institutional ownership, valuation, dividends and earnings.

Earnings and Valuation

This table compares GameStop and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GameStop	$3.67 billion	$131.30 million	50.59
GameStop Competitors	$2.57 billion	$25.51 million	15.34

GameStop has higher revenue and earnings than its competitors. GameStop is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and price targets for GameStop and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameStop	1	0	0	0	1.00
GameStop Competitors	404	2364	5144	144	2.62

GameStop presently has a consensus price target of $13.50, suggesting a potential downside of 41.99%. As a group, “GAMING” companies have a potential upside of 16.20%. Given GameStop’s competitors stronger consensus rating and higher probable upside, analysts clearly believe GameStop has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

29.2% of GameStop shares are owned by institutional investors. Comparatively, 44.0% of shares of all “GAMING” companies are owned by institutional investors. 12.3% of GameStop shares are owned by insiders. Comparatively, 22.9% of shares of all “GAMING” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares GameStop and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GameStop	5.67%	5.25%	3.99%
GameStop Competitors	-10.43%	-44.68%	-4.37%

Risk and Volatility

GameStop has a beta of -0.81, indicating that its share price is 181% less volatile than the S&P 500. Comparatively, GameStop’s competitors have a beta of 2.43, indicating that their average share price is 143% more volatile than the S&P 500.

Dividends

GameStop pays an annual dividend of $1.52 per share and has a dividend yield of 6.5%. GameStop pays out 330.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “GAMING” companies pay a dividend yield of 1.3% and pay out 31.1% of their earnings in the form of a dividend.

Summary

GameStop competitors beat GameStop on 8 of the 15 factors compared.

GameStop Company Profile

GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, as well as engages in the digital asset wallet and NFT marketplace activities. The company operates stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer magazine, a print and digital gaming publication. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.