Reviewing GameStop (GME) & Its Rivals

GameStop (NYSE:GME) is one of 67 publicly-traded companies in the “GAMING” industry, but how does it weigh in compared to its rivals? We will compare GameStop to similar businesses based on the strength of its valuation, dividends, risk, profitability, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for GameStop and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameStop	1	0	0	0	1.00
GameStop Competitors	400	2347	5104	140	2.62

GameStop presently has a consensus target price of $13.50, suggesting a potential downside of 40.13%. As a group, “GAMING” companies have a potential upside of 16.98%. Given GameStop’s rivals stronger consensus rating and higher possible upside, analysts clearly believe GameStop has less favorable growth aspects than its rivals.

Risk & Volatility

GameStop has a beta of -0.81, suggesting that its stock price is 181% less volatile than the S&P 500. Comparatively, GameStop’s rivals have a beta of 2.41, suggesting that their average stock price is 141% more volatile than the S&P 500.

Valuation and Earnings

This table compares GameStop and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GameStop	$3.82 billion	$131.30 million	49.02
GameStop Competitors	$2.60 billion	$24.51 million	15.28

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

Profitability

This table compares GameStop and its rivals’ 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	-66.67%	-45.87%	-5.37%

Institutional & Insider Ownership

29.2% of GameStop shares are held by institutional investors. Comparatively, 43.1% of shares of all “GAMING” companies are held by institutional investors. 12.3% of GameStop shares are held by company insiders. Comparatively, 22.7% of shares of all “GAMING” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

GameStop rivals beat GameStop on 7 of the 13 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.