Comparing GameStop (NYSE:GME) and Gaxos.ai (NASDAQ:GXAI)

Gaxos.ai (NASDAQ:GXAI) and GameStop (NYSE:GME) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Profitability

This table compares Gaxos.ai and GameStop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gaxos.ai	-1,845.25%	-27.37%	-26.48%
GameStop	9.41%	7.72%	5.13%

Risk and Volatility

Gaxos.ai has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, GameStop has a beta of -0.92, meaning that its share price is 192% less volatile than the S&P 500.

Valuation & Earnings

This table compares Gaxos.ai and GameStop”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gaxos.ai	N/A	N/A	-$3.42 million	N/A	N/A
GameStop	$3.82 billion	3.18	$131.30 million	$0.73	37.23

GameStop has higher revenue and earnings than Gaxos.ai.

Institutional and Insider Ownership

42.6% of Gaxos.ai shares are owned by institutional investors. Comparatively, 29.2% of GameStop shares are owned by institutional investors. 3.5% of Gaxos.ai shares are owned by insiders. Comparatively, 8.6% of GameStop shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Gaxos.ai and GameStop, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaxos.ai	0	0	0	0	0.00
GameStop	1	0	0	0	1.00

GameStop has a consensus price target of $13.50, indicating a potential downside of 50.33%. Given GameStop’s stronger consensus rating and higher possible upside, analysts clearly believe GameStop is more favorable than Gaxos.ai.

Summary

GameStop beats Gaxos.ai on 8 of the 10 factors compared between the two stocks.

About Gaxos.ai

Gaxos.ai Inc. engages in developing artificial intelligence applications for various sectors. Its portfolio includes applications in mental and physical wellbeing, coaching, and gaming. In addition, it offers Gaxos, a gaming platform develop, design, acquire, and manage conventional games and combine these games with unconventional game mechanisms. The company was formerly known as The NFT Gaming Company, Inc. and changed its name to Gaxos.ai Inc. in January 2024. Gaxos.ai Inc. was incorporated in 2021 and is based in Roseland, New Jersey.

About GameStop

GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, as well as engages in the digital asset wallet and NFT marketplace activities. The company operates stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer magazine, a print and digital gaming publication. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.