Boyd Gaming (NYSE:BYD – Get Free Report) and GameStop (NYSE:GME – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Volatility and Risk
Boyd Gaming has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, GameStop has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.
Profitability
This table compares Boyd Gaming and GameStop’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Boyd Gaming | 44.84% | 25.63% | 8.99% |
| GameStop | 11.53% | 12.47% | 6.73% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Boyd Gaming | $4.09 billion | 1.55 | $1.84 billion | $22.81 | 3.75 |
| GameStop | $3.63 billion | 3.00 | $418.40 million | $0.75 | 32.36 |
Boyd Gaming has higher revenue and earnings than GameStop. Boyd Gaming is trading at a lower price-to-earnings ratio than GameStop, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
76.8% of Boyd Gaming shares are held by institutional investors. Comparatively, 29.2% of GameStop shares are held by institutional investors. 22.8% of Boyd Gaming shares are held by company insiders. Comparatively, 8.6% of GameStop shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for Boyd Gaming and GameStop, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Boyd Gaming | 0 | 9 | 5 | 0 | 2.36 |
| GameStop | 1 | 1 | 0 | 0 | 1.50 |
Boyd Gaming presently has a consensus target price of $92.08, suggesting a potential upside of 7.65%. GameStop has a consensus target price of $13.50, suggesting a potential downside of 44.37%. Given Boyd Gaming’s stronger consensus rating and higher probable upside, research analysts clearly believe Boyd Gaming is more favorable than GameStop.
Summary
Boyd Gaming beats GameStop on 11 of the 14 factors compared between the two stocks.
About Boyd Gaming
Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The company operates through Las Vegas Locals, Downtown Las Vegas, Midwest & South, and Online segments. It also engages in owning and operating a travel agency. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.
About GameStop
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.
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