WallStSmart

GameStop Corp. (GME)vsPDD Holdings Inc. (PDD)

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Smart Verdict

WallStSmart Research — data-driven comparison

PDD Holdings Inc. generates 12595% more annual revenue ($450.78B vs $3.55B). GME leads profitability with a 25.2% profit margin vs 20.4%. GME appears more attractively valued with a PEG of 0.31. PDD earns a higher WallStSmart Score of 75/100 (B).

GME

Strong Buy

74

out of 100

Grade: B

Growth: 4.7Profit: 7.0Value: 6.7Quality: 7.5
Piotroski: 4/9Altman Z: 2.22

PDD

Strong Buy

75

out of 100

Grade: B

Growth: 6.0Profit: 8.0Value: 9.3Quality: 8.0
Piotroski: 2/9Altman Z: 3.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GMESignificantly Overvalued (-85.1%)

Margin of Safety

-85.1%

Fair Value

$13.08

Current Price

$24.23

$11.15 premium

UndervaluedFair: $13.08Overvalued
PDDUndervalued (+69.0%)

Margin of Safety

+69.0%

Fair Value

$345.11

Current Price

$78.61

$266.50 discount

UndervaluedFair: $345.11Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GME6 strengths · Avg: 8.8/10
PEG RatioValuation
0.3110/10

Growing faster than its price suggests

EPS GrowthGrowth
64.5%10/10

Earnings expanding 64.5% YoY

Profit MarginProfitability
25.2%9/10

Keeps 25 of every $100 in revenue as profit

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

PDD6 strengths · Avg: 9.7/10
P/E RatioValuation
8.8x10/10

Attractively priced relative to earnings

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$25.67B10/10

Generating 25.7B in free cash flow

Altman Z-ScoreHealth
3.6910/10

Safe zone — low bankruptcy risk

Market CapQuality
$111.59B9/10

Large-cap with strong market position

Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

Areas to Watch

GME1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-18.7%2/10

Revenue declined 18.7%

PDD2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-11.2%2/10

Earnings declined 11.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : GME

The strongest argument for GME centers on PEG Ratio, EPS Growth, Profit Margin. Profitability is solid with margins at 25.2% and operating margin at 20.0%. PEG of 0.31 suggests the stock is reasonably priced for its growth.

Bull Case : PDD

The strongest argument for PDD centers on P/E Ratio, Debt/Equity, Free Cash Flow. Profitability is solid with margins at 20.4% and operating margin at 24.7%. PEG of 0.68 suggests the stock is reasonably priced for its growth.

Bear Case : GME

The primary concerns for GME are Revenue Growth.

Bear Case : PDD

The primary concerns for PDD are Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

GME profiles as a declining stock while PDD is a mature play — different risk/reward profiles.

GME carries more volatility with a beta of 1.62 — expect wider price swings.

PDD is growing revenue faster at 8.1% — sustainability is the question.

PDD generates stronger free cash flow (25.7B), providing more financial flexibility.

Bottom Line

PDD scores higher overall (75/100 vs 74/100), backed by strong 20.4% margins. Both earn "Strong Buy" and "Strong 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.

GameStop Corp.

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

GameStop Corp. The company is headquartered in Grapevine, Texas.

PDD Holdings Inc.

CONSUMER CYCLICAL · INTERNET RETAIL · China

Pinduoduo Inc., operates an electronic commerce platform in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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