GameStop (GME) Competitors

Best Buy (NYSE:BBY) and GameStop (NYSE:GME) are both large-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends, analyst recommendations, community ranking and media sentiment.

Do insiders & institutionals hold more shares of BBY or GME?

81.0% of Best Buy shares are held by institutional investors. Comparatively, 29.2% of GameStop shares are held by institutional investors. 0.6% of Best Buy 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, large money managers and hedge funds believe a stock will outperform the market over the long term.

Is BBY or GME a better dividend stock?

Best Buy pays an annual dividend of $3.80 per share and has a dividend yield of 5.0%. GameStop pays an annual dividend of $1.52 per share and has a dividend yield of 6.0%. Best Buy pays out 89.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. GameStop pays out 844.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Best Buy has increased its dividend for 22 consecutive years.

Which has higher valuation & earnings, BBY or GME?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Best Buy	$41.53B	0.39	$1.24B	$4.27	17.72
GameStop	$4.33B	2.63	$6.70M	$0.18	141.92

Do analysts prefer BBY or GME?

Best Buy presently has a consensus target price of $93.50, indicating a potential upside of 23.55%. GameStop has a consensus target price of $10.00, indicating a potential downside of 60.85%. Given Best Buy's stronger consensus rating and higher possible upside, equities analysts clearly believe Best Buy is more favorable than GameStop.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Best Buy	2 Sell rating(s)	8 Hold rating(s)	9 Buy rating(s)	1 Strong Buy rating(s)	2.45
GameStop	1 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.00

Does the media favor BBY or GME?

In the previous week, Best Buy had 9 more articles in the media than GameStop. MarketBeat recorded 29 mentions for Best Buy and 20 mentions for GameStop. Best Buy's average media sentiment score of 1.50 beat GameStop's score of 0.21 indicating that Best Buy is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Best Buy	25 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
GameStop	3 Very Positive mention(s)	1 Positive mention(s)	12 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Neutral

Does the MarketBeat Community believe in BBY or GME?

Best Buy received 276 more outperform votes than GameStop when rated by MarketBeat users. Likewise, 73.43% of users gave Best Buy an outperform vote while only 73.36% of users gave GameStop an outperform vote.

Company	Underperform	Outperform
Best Buy	Outperform Votes 1606 73.43%	Underperform Votes 581 26.57%
GameStop	Outperform Votes 1330 73.36%	Underperform Votes 483 26.64%

Is BBY or GME more profitable?

Best Buy has a net margin of 3.01% compared to GameStop's net margin of 1.45%. Best Buy's return on equity of 45.93% beat GameStop's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Best Buy	3.01%	45.93%	9.08%
GameStop	1.45%	2.11%	1.46%

Which has more risk and volatility, BBY or GME?

Best Buy has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, GameStop has a beta of -0.29, meaning that its stock price is 129% less volatile than the S&P 500.

Summary

Best Buy beats GameStop on 18 of the 22 factors compared between the two stocks.