GameStop (GME) Competitors

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

Do institutionals & insiders believe in 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. 0.5% 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Which has more risk and volatility, BBY or GME?

Best Buy has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, GameStop has a beta of -0.69, suggesting that its share price is 169% less volatile than the S&P 500.

Does the media prefer BBY or GME?

In the previous week, GameStop had 2 more articles in the media than Best Buy. MarketBeat recorded 15 mentions for GameStop and 13 mentions for Best Buy. Best Buy's average media sentiment score of 1.02 beat GameStop's score of 0.34 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	7 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
GameStop	4 Very Positive mention(s)	2 Positive mention(s)	8 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

Does the MarketBeat Community believe in BBY or GME?

Best Buy received 284 more outperform votes than GameStop when rated by MarketBeat users. However, 73.28% of users gave GameStop an outperform vote while only 73.23% of users gave Best Buy an outperform vote.

Company	Underperform	Outperform
Best Buy	Outperform Votes 1614 73.23%	Underperform Votes 590 26.77%
GameStop	Outperform Votes 1330 73.28%	Underperform Votes 485 26.72%

Do analysts rate BBY or GME?

Best Buy currently has a consensus target price of $86.11, suggesting a potential upside of 16.91%. GameStop has a consensus target price of $11.50, suggesting a potential downside of 61.60%. 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
Best Buy	1 Sell rating(s)	10 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.40
GameStop	1 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.00

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 better valuation and 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	$41.45B	0.38	$1.24B	$4.09	18.01
GameStop	$3.82B	3.50	$6.70M	$0.26	115.17

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 5.2%. GameStop pays an annual dividend of $1.52 per share and has a dividend yield of 5.1%. Best Buy pays out 92.9% 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 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 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.

Summary

Best Buy beats GameStop on 16 of the 21 factors compared between the two stocks.