Best Buy Co., Inc. (BBY) vs GameStop Corp. (GME)

Best Buy Co., Inc. and GameStop Corp. are both Specialty Retail companies. Best Buy Co., Inc. is the larger, with a market value of $18.8B against $12.6B — 1.5× the size. GameStop Corp. trades at the lower P/E: 11.7× against 15.0×. Best Buy Co., Inc. grew revenue faster over the last twelve months: 1.45% against −7.71%. GameStop Corp. has the higher net margin (25.2% vs 3.01%) and the lower return on invested capital (5.72% vs 51.0%). Across the 22 metrics below, GameStop Corp. leads on 12 and Best Buy Co., Inc. on 10.

Valuation

Metric BBY GME Specialty Retail median
P/E 14.96 11.70 17.14
P/S 0.45 2.96 0.48
P/B 6.01 1.71 1.71
Price to free cash flow 10.82 55.31 13.04
EV/EBITDA 6.73 19.49 8.92
EV/Sales 0.43 2.71 0.64
Earnings yield 6.68% 8.55% 3.85%
Free cash flow yield 9.24% 1.81% 3.02%

Profitability

Metric BBY GME Specialty Retail median
Gross margin 22.68% 37.89% 37.89%
Operating margin 4.05% 13.52% 3.66%
Net margin 3.01% 25.16% 1.42%
Free cash flow margin 4.19% 19.38% 1.44%
Return on equity 43.13% 15.79% 2.58%
Return on assets 8.11% 8.32% 0.25%
Return on invested capital 50.97% 5.72% 0.00%

Growth

Metric BBY GME Specialty Retail median
Revenue growth (TTM) 1.45% (7.71%) 3.35%
EPS growth (last fiscal year) 17.76% 133.33% —
Revenue growth, 5-year CAGR (2.48%) (6.54%) 3.70%
Net income growth, 5-year CAGR (9.88%) 0.00% 0.00%

Health

Metric BBY GME Specialty Retail median
Debt to equity 0.37 0.68 0.27
Current ratio 1.12 8.72 1.35
Net debt to EBITDA (0.23) (19.66) 0.24

Dividend

Metric BBY GME Specialty Retail median
Dividend yield 4.82% — 1.73%
Payout ratio 0.62 0.00 0.00

Size

Metric BBY GME Specialty Retail median
Market cap 18.81b 12.63b 348.57m

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