GameStop vs Capcom Which Is a Better Investment?

The ongoing battle between GameStop and Capcom stocks has been a topic of interest for investors and gamers alike. GameStop has seen a surge in stock prices due to a frenzy of retail investors, while Capcom's stocks have remained relatively stable despite the volatile market conditions. Both companies are key players in the gaming industry, with GameStop facing challenges from online retailers and Capcom releasing highly anticipated titles. The competition between the two stocks highlights the ever-changing landscape of the stock market and gaming sector.

GameStop or Capcom?

When comparing GameStop and Capcom, 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 GameStop and Capcom.

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. GameStop has a dividend yield of -%, while Capcom has a dividend yield of 1.32%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. GameStop reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Capcom reports a 5-year dividend growth of 0.47% year and a payout ratio of 42.44%.

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 GameStop P/E ratio at 194.33 and Capcom's P/E ratio at 20.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. GameStop P/B ratio is 2.55 while Capcom's P/B ratio is 3.63.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $27.92 for GameStop and $11.19 for Capcom. Over the past year, GameStop's prices ranged from $9.95 to $64.83, with a yearly change of 551.56%. Capcom's prices fluctuated between $7.73 and $12.20, with a yearly change of 57.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.