GameStop (NYSE:GME) versus Century Casinos (NASDAQ:CNTY) Head to Head Contrast

GameStop (NYSE:GME) and Century Casinos (NASDAQ:CNTY) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for GameStop and Century Casinos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameStop	1	1	0	0	1.50
Century Casinos	1	0	3	0	2.50

GameStop presently has a consensus price target of $13.50, indicating a potential downside of 41.85%. Century Casinos has a consensus price target of $3.00, indicating a potential upside of 100.00%. Given Century Casinos’ stronger consensus rating and higher probable upside, analysts plainly believe Century Casinos is more favorable than GameStop.

Risk and Volatility

GameStop has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Century Casinos has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.

Insider and Institutional Ownership

29.2% of GameStop shares are owned by institutional investors. Comparatively, 66.4% of Century Casinos shares are owned by institutional investors. 8.6% of GameStop shares are owned by company insiders. Comparatively, 13.0% of Century Casinos shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares GameStop and Century Casinos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GameStop	11.53%	12.47%	6.73%
Century Casinos	-10.72%	-364.04%	-5.26%

Earnings and Valuation

This table compares GameStop and Century Casinos”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GameStop	$3.63 billion	2.87	$418.40 million	$0.75	30.95
Century Casinos	$572.97 million	0.07	-$61.42 million	($2.03)	-0.74

GameStop has higher revenue and earnings than Century Casinos. Century Casinos is trading at a lower price-to-earnings ratio than GameStop, indicating that it is currently the more affordable of the two stocks.

Summary

GameStop beats Century Casinos on 8 of the 13 factors compared between the two stocks.

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.

About Century Casinos

Century Casinos, Inc. operates as a casino entertainment company in the United States, Canada, and Poland. It develops and operates gaming establishments, as well as related lodging, restaurant, and horse racing including, off-track betting; and entertainment facilities. The company was founded in 1992 and is based in Colorado Springs, Colorado.