AutoZone vs GameStop Which Is More Reliable?

AutoZone and GameStop are both well-known companies in their respective industries, with AutoZone being one of the largest automotive parts retailers in the United States and GameStop being a major video game retailer. However, their stocks have taken very different paths in recent years. AutoZone's stock has been steadily rising as the company continues to grow its business and deliver strong financial results, while GameStop's stock has been highly volatile due to challenges in the video game industry and shifts in consumer behavior. Investors looking to potentially invest in either of these companies should carefully consider their individual strengths and weaknesses before making a decision.

AutoZone or GameStop?

When comparing AutoZone and GameStop, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AutoZone and GameStop.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AutoZone has a dividend yield of -%, while GameStop has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AutoZone reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, GameStop reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AutoZone P/E ratio at 20.83 and GameStop's P/E ratio at 260.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AutoZone P/B ratio is -11.68 while GameStop's P/B ratio is 2.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AutoZone has seen a 5-year revenue growth of 1.27%, while GameStop's is -0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AutoZone's ROE at -54.23% and GameStop's ROE at 2.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3179.00 for AutoZone and $26.15 for GameStop. Over the past year, AutoZone's prices ranged from $2510.00 to $3256.37, with a yearly change of 29.74%. GameStop's prices fluctuated between $9.95 and $64.83, with a yearly change of 551.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.