GME vs. BBY, CONN, DECK, EBAY, DLTR, QSR, CVNA, BLDR, ULTA, and WSM
Should you be buying GameStop stock or one of its competitors? The main competitors of GameStop include Best Buy (BBY), Conn's (CONN), Deckers Outdoor (DECK), eBay (EBAY), Dollar Tree (DLTR), Restaurant Brands International (QSR), Carvana (CVNA), Builders FirstSource (BLDR), Ulta Beauty (ULTA), and Williams-Sonoma (WSM). These companies are all part of the "retail/wholesale" sector.
GameStop (NYSE:GME) and Best Buy (NYSE:BBY) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their media sentiment, dividends, analyst recommendations, earnings, institutional ownership, profitability, community ranking, valuation and risk.
In the previous week, Best Buy had 10 more articles in the media than GameStop. MarketBeat recorded 46 mentions for Best Buy and 36 mentions for GameStop. Best Buy's average media sentiment score of 0.98 beat GameStop's score of 0.55 indicating that Best Buy is being referred to more favorably in the news media.
29.2% of GameStop shares are held by institutional investors. Comparatively, 81.0% of Best Buy shares are held by institutional investors. 12.3% of GameStop shares are held by insiders. Comparatively, 0.6% of Best Buy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
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.
Best Buy has a net margin of 2.90% compared to GameStop's net margin of 0.13%. Best Buy's return on equity of 47.56% beat GameStop's return on equity.
GameStop has a beta of -0.25, meaning that its stock price is 125% less volatile than the S&P 500. Comparatively, Best Buy has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.
GameStop presently has a consensus target price of $7.00, suggesting a potential downside of 69.75%. Best Buy has a consensus target price of $86.36, suggesting a potential upside of 1.81%. Given Best Buy's stronger consensus rating and higher possible upside, analysts plainly believe Best Buy is more favorable than GameStop.
Best Buy received 241 more outperform votes than GameStop when rated by MarketBeat users. Likewise, 73.86% of users gave Best Buy an outperform vote while only 73.85% of users gave GameStop an outperform vote.
Summary
Best Buy beats GameStop on 15 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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