GameStop vs eBay Which Is More Profitable?

GameStop and eBay are two well-known companies in the retail industry that have experienced significant fluctuations in their stock prices in recent years. GameStop, a video game retailer, has been a popular target for short sellers due to concerns about its business model, while eBay, an online marketplace, has faced competition from larger e-commerce platforms. Investors are closely monitoring these stocks to assess their potential for growth and profitability in an ever-changing market environment.

GameStop or eBay?

When comparing GameStop and eBay, 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 eBay.

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 eBay has a dividend yield of 1.7%. 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, eBay reports a 5-year dividend growth of 0.00% year and a payout ratio of 26.44%.

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 247.84 and eBay's P/E ratio at 15.05. 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 2.40 while eBay's P/B ratio is 5.61.

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 eBay's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GameStop's ROE at 2.05% and eBay's ROE at 34.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $24.63 for GameStop and $61.97 for eBay. Over the past year, GameStop's prices ranged from $9.95 to $64.83, with a yearly change of 551.56%. eBay's prices fluctuated between $38.60 and $67.80, with a yearly change of 75.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.