GameStop (GME) Competitors

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

Which has higher earnings and valuation, GME or BBY?

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
GameStop	$3.82B	3.15	$6.70M	$0.26	103.69
Best Buy	$41.53B	0.31	$1.24B	$4.27	14.47

Which has more volatility & risk, GME or BBY?

GameStop has a beta of -0.44, meaning that its share price is 144% less volatile than the S&P 500. Comparatively, Best Buy has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Do insiders & institutionals have more ownership in GME or BBY?

29.2% of GameStop shares are owned by institutional investors. Comparatively, 81.0% of Best Buy shares are owned by institutional investors. 12.3% of GameStop shares are owned by company insiders. Comparatively, 0.6% of Best Buy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Do analysts prefer GME or BBY?

GameStop presently has a consensus target price of $11.50, indicating a potential downside of 57.34%. Best Buy has a consensus target price of $91.28, indicating a potential upside of 47.70%. Given Best Buy's stronger consensus rating and higher possible upside, analysts clearly believe Best Buy is more favorable than GameStop.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameStop	1 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.00
Best Buy	2 Sell rating(s)	9 Hold rating(s)	8 Buy rating(s)	1 Strong Buy rating(s)	2.40

Does the media prefer GME or BBY?

In the previous week, Best Buy had 10 more articles in the media than GameStop. MarketBeat recorded 34 mentions for Best Buy and 24 mentions for GameStop. Best Buy's average media sentiment score of 1.34 beat GameStop's score of 1.03 indicating that Best Buy is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
GameStop	10 Very Positive mention(s)	3 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Best Buy	24 Very Positive mention(s)	3 Positive mention(s)	2 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Positive

Is GME or BBY a better dividend stock?

GameStop pays an annual dividend of $1.52 per share and has a dividend yield of 5.6%. Best Buy pays an annual dividend of $3.80 per share and has a dividend yield of 6.1%. GameStop pays out 584.6% 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 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. Best Buy has raised its dividend for 22 consecutive years. Best Buy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Is GME or BBY 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
GameStop	1.45%	2.11%	1.46%
Best Buy	3.01%	45.93%	9.08%

Does the MarketBeat Community believe in GME or BBY?

Best Buy received 278 more outperform votes than GameStop when rated by MarketBeat users. Likewise, 73.39% of users gave Best Buy an outperform vote while only 73.28% of users gave GameStop an outperform vote.

Company	Underperform	Outperform
GameStop	Outperform Votes 1330 73.28%	Underperform Votes 485 26.72%
Best Buy	Outperform Votes 1608 73.39%	Underperform Votes 583 26.61%

Summary

Best Buy beats GameStop on 19 of the 22 factors compared between the two stocks.