Best Buy Co. Inc (BBY)vsGameStop Corp. (GME)
BBY
Best Buy Co. Inc
$62.80
-2.17%
CONSUMER CYCLICAL · Cap: $13.16B
GME
GameStop Corp.
$22.57
-2.84%
CONSUMER CYCLICAL · Cap: $10.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Best Buy Co. Inc generates 995% more annual revenue ($41.69B vs $3.81B). GME leads profitability with a 11.1% profit margin vs 2.6%. GME appears more attractively valued with a PEG of 0.31. BBY earns a higher WallStSmart Score of 64/100 (C+).
BBY
Buy64
out of 100
Grade: C+
GME
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+71.6%
Fair Value
$235.87
Current Price
$62.80
$173.07 discount
Margin of Safety
+41.2%
Fair Value
$41.18
Current Price
$22.57
$18.61 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 37 in profit
Earnings expanding 371.7% YoY
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Generating 1.1B in free cash flow
Growing faster than its price suggests
Earnings expanding 226.8% YoY
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
2.6% margin — thin
Revenue declined 100.0%
Moderate valuation
Revenue declined 4.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : BBY
The strongest argument for BBY centers on Return on Equity, EPS Growth, Altman Z-Score. PEG of 1.18 suggests the stock is reasonably priced for its growth.
Bull Case : GME
The strongest argument for GME centers on PEG Ratio, EPS Growth, Altman Z-Score. PEG of 0.31 suggests the stock is reasonably priced for its growth.
Bear Case : BBY
The primary concerns for BBY are Profit Margin, Revenue Growth. Thin 2.6% margins leave little buffer for downturns.
Bear Case : GME
The primary concerns for GME are P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
BBY profiles as a value stock while GME is a declining play — different risk/reward profiles.
GME carries more volatility with a beta of 1.89 — expect wider price swings.
GME is growing revenue faster at -4.6% — sustainability is the question.
BBY generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
BBY scores higher overall (64/100 vs 60/100). GME offers better value entry with a 41.2% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Best Buy Co. Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.
GameStop Corp.
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
GameStop Corp. The company is headquartered in Grapevine, Texas.
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