GameStop vs Roblox Which Is More Lucrative?

GameStop and Roblox have been two of the most talked-about stocks in recent times, with both experiencing significant fluctuations in their prices. GameStop, a brick-and-mortar video game retailer, gained attention due to a Reddit-fueled short squeeze earlier this year. On the other hand, Roblox, a popular online gaming platform, has seen a surge in its stock price as more people turn to gaming during the pandemic. Both stocks have attracted investors seeking to capitalize on the growing gaming industry.

GameStop or Roblox?

When comparing GameStop and Roblox, 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 Roblox.

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 Roblox has a dividend yield of -%. 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, Roblox 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 GameStop P/E ratio at 186.97 and Roblox's P/E ratio at -35.23. 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 2.45 while Roblox's P/B ratio is 192.85.

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 Roblox's is 6.35%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GameStop's ROE at 2.13% and Roblox's ROE at -905.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $26.85 for GameStop and $55.65 for Roblox. Over the past year, GameStop's prices ranged from $9.95 to $64.83, with a yearly change of 551.56%. Roblox's prices fluctuated between $29.55 and $59.80, with a yearly change of 102.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.