GameStop (GME) vs. Its Rivals Head-To-Head Survey

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

Insider & Institutional 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

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

Profitability

This table compares GameStop and its peers’ 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%

Valuation & Earnings

This table compares GameStop and its peers gross 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 peers. GameStop is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations for GameStop and its peers, 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	404	2370	5164	144	2.62

GameStop presently has a consensus price target of $13.50, suggesting a potential downside of 42.06%. As a group, “GAMING” companies have a potential upside of 16.34%. Given GameStop’s peers stronger consensus rating and higher possible upside, analysts plainly believe GameStop has less favorable growth aspects than its peers.

Summary

GameStop peers beat GameStop on 7 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.