Comparing GameStop (NYSE:GME) & ATRenew (NYSE:RERE)

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

Institutional & Insider Ownership

29.2% of GameStop shares are held by institutional investors. Comparatively, 19.3% of ATRenew shares are held by institutional investors. 9.5% of GameStop shares are held by company insiders. Comparatively, 10.7% of ATRenew shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
GameStop 25.16% 13.57% 7.16%
ATRenew 2.01% 12.32% 8.30%

Volatility and Risk

GameStop has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, ATRenew has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for GameStop and ATRenew, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GameStop 0 2 1 1 2.75
ATRenew 0 1 2 0 2.67

GameStop presently has a consensus price target of $32.00, suggesting a potential upside of 24.81%. ATRenew has a consensus price target of $5.50, suggesting a potential upside of 42.67%. Given ATRenew’s higher probable upside, analysts plainly believe ATRenew is more favorable than GameStop.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GameStop $3.63 billion 3.56 $418.40 million $1.52 16.87
ATRenew $3.01 billion 0.28 $48.09 million $0.29 13.29

GameStop has higher revenue and earnings than ATRenew. ATRenew is trading at a lower price-to-earnings ratio than GameStop, indicating that it is currently the more affordable of the two stocks.

Summary

GameStop beats ATRenew on 11 of the 15 factors compared between the two stocks.

About GameStop

(Get Free Report)

GameStop Corp. is a specialty retailer focused on video games and gaming-related products. Its offerings include new and pre-owned video game hardware and software, consoles, accessories, collectibles, and other merchandise for gamers. The company sells through retail stores and online channels, and has also operated digital platforms and services related to gaming. Its business has historically included store brands such as EB Games in certain markets. GameStop traces its roots to Babbage’s, a software retailer founded in 1984 in Dallas, Texas.

About ATRenew

(Get Free Report)

ATRenew Inc. operates a technology-enabled platform in China for recycling and reselling pre-owned consumer electronics, particularly smartphones. Through its Aihuishou brand, the company accepts devices from consumers and businesses, assesses their condition, and directs them to resale or other processing channels. The company connects online services with a network of physical stores and collection points, and works with e-commerce platforms and other partners to support trade-ins and device recycling.

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