Financial Comparison: GameStop (GME) vs. The Competition

GameStop (NYSE:GME) is one of 285 public companies in the “Specialty Retail” industry, but how does it contrast to its competitors? We will compare GameStop to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, earnings, valuation, dividends and risk.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
GameStop	$3.63 billion	$418.40 million	15.88
GameStop Competitors	$7.24 billion	$386.47 million	32.30

GameStop’s competitors have higher revenue, but lower earnings than GameStop. GameStop is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for GameStop and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameStop	0	2	1	0	2.33
GameStop Competitors	3663	15557	21591	586	2.46

GameStop presently has a consensus target price of $32.00, suggesting a potential upside of 32.53%. As a group, “Specialty Retail” companies have a potential upside of 8.38%. Given GameStop’s higher possible upside, equities research analysts plainly believe GameStop is more favorable than its competitors.

Institutional and Insider Ownership

29.2% of GameStop shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 9.5% of GameStop shares are owned by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers 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	25.16%	13.57%	7.16%
GameStop Competitors	-3.67%	-14.10%	3.17%

Risk & Volatility

GameStop has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, GameStop’s competitors have a beta of 1.66, meaning that their average share price is 66% more volatile than the S&P 500.

Summary

GameStop competitors beat GameStop on 8 of the 13 factors compared.

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.