GameStop (GME) and Its Competitors Financial Review

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

Risk and Volatility

GameStop has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, GameStop’s rivals have a beta of 1.76, suggesting that their average stock price is 76% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameStop	0	2	1	0	2.33
GameStop Competitors	3655	15540	21575	576	2.46

GameStop presently has a consensus target price of $32.00, indicating a potential upside of 33.57%. As a group, “Specialty Retail” companies have a potential upside of 8.90%. Given GameStop’s higher probable upside, research analysts clearly believe GameStop is more favorable than its rivals.

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	$3.63 billion	$418.40 million	15.76
GameStop Competitors	$7.28 billion	$386.47 million	39.65

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

Institutional & 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

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	25.16%	13.57%	7.16%
GameStop Competitors	-3.65%	-14.17%	3.17%

Summary

GameStop rivals beat GameStop on 8 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.