GameStop vs Walmart Which Outperforms?

GameStop and Walmart are two major players in the retail industry, but their stocks have been on different trajectories in recent years. GameStop has experienced extreme volatility due to shifts in the gaming industry and online competition. In contrast, Walmart has remained a steady and reliable investment with a strong presence in both physical and digital retail. Investors looking to diversify their portfolio may consider the potential risks and rewards of investing in GameStop versus Walmart stocks.

GameStop or Walmart?

When comparing GameStop and Walmart, 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 Walmart.

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 Walmart has a dividend yield of 0.88%. 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, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 33.23%.

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 Walmart's P/E ratio at 38.50. 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 Walmart's P/B ratio is 8.60.

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 Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GameStop's ROE at 2.13% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $27.92 for GameStop and $93.04 for Walmart. Over the past year, GameStop's prices ranged from $9.95 to $64.83, with a yearly change of 551.56%. Walmart's prices fluctuated between $50.51 and $96.18, with a yearly change of 90.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.