GameStop (NYSE:GME – Get Free Report) is one of 285 public companies in the “Specialty Retail” industry, but how does it contrast to its peers? We will compare GameStop to related companies based on the strength of its institutional ownership, valuation, risk, dividends, earnings, profitability and analyst recommendations.
Risk and Volatility
GameStop has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, GameStop’s peers have a beta of 1.91, indicating that their average share price is 91% more volatile than the S&P 500.
Institutional and Insider Ownership
29.2% of GameStop shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 9.5% of GameStop shares are owned by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are owned by 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.
Earnings & Valuation
This table compares GameStop and its peers gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| GameStop | $3.55 billion | $418.40 million | 16.03 |
| GameStop Competitors | $7.06 billion | $386.47 million | 33.42 |
GameStop’s peers have higher revenue, but lower earnings than GameStop. GameStop is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Profitability
This table compares GameStop and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GameStop | 25.16% | 13.57% | 7.16% |
| GameStop Competitors | -3.69% | -13.97% | 3.17% |
Dividends
GameStop pays an annual dividend of $1.52 per share and has a dividend yield of 6.2%. GameStop pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialty Retail” companies pay a dividend yield of 2.0% and pay out 35.6% of their earnings in the form of a dividend.
Analyst Recommendations
This is a summary of recent ratings and target prices for GameStop and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GameStop | 0 | 2 | 1 | 1 | 2.75 |
| GameStop Competitors | 3667 | 15577 | 21606 | 590 | 2.46 |
GameStop presently has a consensus target price of $32.00, indicating a potential upside of 31.31%. As a group, “Specialty Retail” companies have a potential upside of 4.39%. Given GameStop’s stronger consensus rating and higher probable upside, equities analysts clearly believe GameStop is more favorable than its peers.
Summary
GameStop beats its peers on 8 of the 15 factors compared.
GameStop Company Profile
GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, as well as engages in the digital asset wallet and NFT marketplace activities. The company operates stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer magazine, a print and digital gaming publication. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.
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