GameStop (GME) and Its Competitors Financial Survey

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

Risk & 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 rivals have a beta of 2.43, indicating that their average share price is 143% more volatile than the S&P 500.

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	-10.41%	-44.48%	-4.35%

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

Analyst Ratings

This is a summary of current ratings and price targets for GameStop and its rivals, 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	2370	5164	144	2.62

GameStop currently has a consensus target price of $13.50, indicating a potential downside of 42.06%. As a group, “GAMING” companies have a potential upside of 16.34%. Given GameStop’s rivals stronger consensus rating and higher probable upside, analysts clearly believe GameStop has less favorable growth aspects than its rivals.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
GameStop	$3.82 billion	$131.30 million	50.65
GameStop Competitors	$2.58 billion	$25.51 million	15.42

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.

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.