FedEx vs GameStop

"Both FedEx and GameStop are well-known companies in their respective industries, but their stocks have experienced very different trajectories in recent years. FedEx, a global provider of shipping and logistics services, has seen steady growth in its stock price due to its strong performance and consistent revenue growth. On the other hand, GameStop, a retailer of video games and electronics, has faced challenges due to changing consumer preferences and the rise of digital downloads. This has resulted in significant volatility in its stock price, attracting the attention of both investors and speculators."

FedEx or GameStop?

When comparing FedEx 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 FedEx 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. FedEx has a dividend yield of 1.99%, while GameStop has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. FedEx reports a 5-year dividend growth of 15.01% year and a payout ratio of 31.63%. 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 FedEx P/E ratio at 16.23 and GameStop's P/E ratio at 193.38. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. FedEx P/B ratio is 2.42 while GameStop's P/B ratio is 1.87.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, FedEx has seen a 5-year revenue growth of 0.45%, while GameStop's is -0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with FedEx's ROE at 15.00% and GameStop's ROE at 2.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $265.66 for FedEx and $20.98 for GameStop. Over the past year, FedEx's prices ranged from $224.69 to $313.84, with a yearly change of 39.68%. 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.