GameStop vs Tesla Which Is More Attractive?

GameStop and Tesla stocks are two of the most talked-about and highly volatile investments in the market today. GameStop, a struggling retail video game company, recently saw a massive surge in its stock price due to a Reddit-fueled short squeeze, causing chaos in the stock market. On the other hand, Tesla, led by the charismatic Elon Musk, has been a pioneer in the electric vehicle industry and continues to dominate the market with its groundbreaking technology and innovative products. Both stocks have captured the attention of investors worldwide, but their trajectories couldn't be more different.

GameStop or Tesla?

When comparing GameStop and Tesla, 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 Tesla.

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 Tesla 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, Tesla 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 Tesla's P/E ratio at 100.94. 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 Tesla's P/B ratio is 18.34.

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 Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GameStop's ROE at 2.13% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $26.85 for GameStop and $390.85 for Tesla. Over the past year, GameStop's prices ranged from $9.95 to $64.83, with a yearly change of 551.56%. Tesla's prices fluctuated between $138.80 and $409.72, with a yearly change of 195.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.