Capcom vs GameStop Which Performs Better?

Capcom and GameStop are two prominent companies in the gaming industry, each with its own unique strengths and challenges. Recently, both stocks have been in the spotlight due to their fluctuating performance in the stock market. Investors are closely watching how these companies navigate the ever-changing landscape of the gaming market and how their financial standing may impact their stock prices. This comparison between Capcom and GameStop stocks offers valuable insights into the current state of the gaming industry and the potential investment opportunities that lie ahead.

Capcom or GameStop?

When comparing Capcom 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 Capcom 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. Capcom has a dividend yield of 1.27%, while GameStop has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Capcom reports a 5-year dividend growth of 0.47% year and a payout ratio of 42.44%. 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 Capcom P/E ratio at 20.95 and GameStop's P/E ratio at 186.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Capcom P/B ratio is 3.71 while GameStop's P/B ratio is 2.45.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Capcom has seen a 5-year revenue growth of -0.31%, while GameStop's is -0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Capcom's ROE at 18.52% and GameStop's ROE at 2.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.61 for Capcom and $26.85 for GameStop. Over the past year, Capcom's prices ranged from $7.73 to $12.20, with a yearly change of 57.83%. 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.