GME vs. AEO, ZGN, M, GLBE, SHAK, ABG, AAP, CPRI, SIG, and GPI
Should you be buying GameStop stock or one of its competitors? The main competitors of GameStop include American Eagle Outfitters (AEO), Ermenegildo Zegna (ZGN), Macy's (M), Global-E Online (GLBE), Shake Shack (SHAK), Asbury Automotive Group (ABG), Advance Auto Parts (AAP), Capri (CPRI), Signet Jewelers (SIG), and Group 1 Automotive (GPI). These companies are all part of the "retail/wholesale" sector.
American Eagle Outfitters (NYSE:AEO) and GameStop (NYSE:GME) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, community ranking, analyst recommendations, institutional ownership and media sentiment.
97.3% of American Eagle Outfitters shares are held by institutional investors. Comparatively, 29.2% of GameStop shares are held by institutional investors. 7.5% of American Eagle Outfitters shares are held by company insiders. Comparatively, 12.3% of GameStop shares are held 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.
American Eagle Outfitters has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, GameStop has a beta of -0.25, meaning that its stock price is 125% less volatile than the S&P 500.
American Eagle Outfitters has a net margin of 3.23% compared to American Eagle Outfitters' net margin of 0.13%. GameStop's return on equity of 17.76% beat American Eagle Outfitters' return on equity.
GameStop received 187 more outperform votes than American Eagle Outfitters when rated by MarketBeat users. Likewise, 73.89% of users gave GameStop an outperform vote while only 64.36% of users gave American Eagle Outfitters an outperform vote.
American Eagle Outfitters has higher earnings, but lower revenue than GameStop. American Eagle Outfitters is trading at a lower price-to-earnings ratio than GameStop, indicating that it is currently the more affordable of the two stocks.
American Eagle Outfitters currently has a consensus price target of $23.00, suggesting a potential downside of 5.97%. GameStop has a consensus price target of $5.60, suggesting a potential downside of 76.97%. Given GameStop's stronger consensus rating and higher possible upside, equities analysts plainly believe American Eagle Outfitters is more favorable than GameStop.
In the previous week, GameStop had 36 more articles in the media than American Eagle Outfitters. MarketBeat recorded 38 mentions for GameStop and 2 mentions for American Eagle Outfitters. GameStop's average media sentiment score of 1.24 beat American Eagle Outfitters' score of 0.33 indicating that American Eagle Outfitters is being referred to more favorably in the media.
Summary
American Eagle Outfitters beats GameStop on 11 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding GME and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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