Best Buy Co. Inc (BBY)vsGameStop Corp. (GME)
BBY
Best Buy Co. Inc
$86.35
+1.29%
CONSUMER CYCLICAL · Cap: $18.51B
GME
GameStop Corp.
$19.06
-12.25%
CONSUMER CYCLICAL · Cap: $9.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Best Buy Co. Inc generates 1021% more annual revenue ($41.86B vs $3.73B). GME leads profitability with a 20.4% profit margin vs 2.7%. GME appears more attractively valued with a PEG of 0.31. GME earns a higher WallStSmart Score of 74/100 (B).
BBY
Buy60
out of 100
Grade: C+
GME
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-64.7%
Fair Value
$40.72
Current Price
$86.35
$45.63 premium
Margin of Safety
-58.0%
Fair Value
$15.32
Current Price
$19.06
$3.74 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 37 in profit
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Earnings expanding 37.9% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 633.0% YoY
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
1.9% revenue growth
2.7% margin — thin
Operating margin of 4.0%
ROE of 7.7% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : BBY
The strongest argument for BBY centers on Return on Equity, Altman Z-Score, P/E Ratio.
Bull Case : GME
The strongest argument for GME centers on PEG Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 20.4% and operating margin at 16.6%. Revenue growth of 14.1% demonstrates continued momentum.
Bear Case : BBY
The primary concerns for BBY are PEG Ratio, Revenue Growth, Profit Margin. Thin 2.7% margins leave little buffer for downturns.
Bear Case : GME
The primary concerns for GME are Return on Equity.
Key Dynamics to Monitor
BBY profiles as a value stock while GME is a mature play — different risk/reward profiles.
GME carries more volatility with a beta of 1.76 — expect wider price swings.
GME is growing revenue faster at 14.1% — sustainability is the question.
GME generates stronger free cash flow (333M), providing more financial flexibility.
Bottom Line
GME scores higher overall (74/100 vs 60/100), backed by strong 20.4% margins and 14.1% revenue growth. Both earn "Strong 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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