WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PDD Holdings Inc. generates 11752% more annual revenue ($442.40B vs $3.73B). PDD leads profitability with a 21.6% profit margin vs 20.4%. GME appears more attractively valued with a PEG of 0.31. PDD earns a higher WallStSmart Score of 76/100 (B+).

GME

Strong Buy

74

out of 100

Grade: B

Growth: 6.0Profit: 6.0Value: 6.7Quality: 7.5
Piotroski: 4/9Altman Z: 2.19

PDD

Strong Buy

76

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 (-58.6%)

Margin of Safety

-58.6%

Fair Value

$15.26

Current Price

$21.80

$6.54 premium

UndervaluedFair: $15.26Overvalued
PDDUndervalued (+70.6%)

Margin of Safety

+70.6%

Fair Value

$363.48

Current Price

$85.07

$278.41 discount

UndervaluedFair: $363.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GME5 strengths · Avg: 9.0/10
PEG RatioValuation
0.3110/10

Growing faster than its price suggests

EPS GrowthGrowth
633.0%10/10

Earnings expanding 633.0% YoY

Profit MarginProfitability
20.4%9/10

Keeps 20 of every $100 in revenue as profit

P/E RatioValuation
16.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

PDD6 strengths · Avg: 9.7/10
P/E RatioValuation
8.6x10/10

Attractively priced relative to earnings

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$24.12B10/10

Generating 24.1B in free cash flow

Altman Z-ScoreHealth
3.6910/10

Safe zone — low bankruptcy risk

Market CapQuality
$116.09B9/10

Large-cap with strong market position

Return on EquityProfitability
22.9%9/10

Every $100 of equity generates 23 in profit

Areas to Watch

GME1 concerns · Avg: 3.0/10
Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

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

Weak financial health signals

EPS GrowthGrowth
-14.9%2/10

Earnings declined 14.9%

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 20.4% and operating margin at 16.6%. Revenue growth of 14.1% demonstrates continued momentum.

Bull Case : PDD

The strongest argument for PDD centers on P/E Ratio, Debt/Equity, Free Cash Flow. Profitability is solid with margins at 21.6% and operating margin at 18.4%. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : GME

The primary concerns for GME are Return on Equity.

Bear Case : PDD

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

Key Dynamics to Monitor

GME carries more volatility with a beta of 1.77 — expect wider price swings.

GME is growing revenue faster at 14.1% — sustainability is the question.

PDD generates stronger free cash flow (24.1B), providing more financial flexibility.

Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PDD scores higher overall (76/100 vs 74/100), backed by strong 21.6% margins and 11.0% revenue growth. 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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