Best Buy Co. Inc (BBY)vsGameStop Corp. (GME)
BBY
Best Buy Co. Inc
$95.65
-4.72%
CONSUMER CYCLICAL · Cap: $20.34B
GME
GameStop Corp.
$24.23
+0.96%
CONSUMER CYCLICAL · Cap: $11.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Best Buy Co. Inc generates 1088% more annual revenue ($42.20B vs $3.55B). GME leads profitability with a 25.2% profit margin vs 3.0%. GME appears more attractively valued with a PEG of 0.31. GME earns a higher WallStSmart Score of 74/100 (B).
BBY
Buy60
out of 100
Grade: C+
GME
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-58.2%
Fair Value
$42.40
Current Price
$95.65
$53.25 premium
Margin of Safety
-85.1%
Fair Value
$13.08
Current Price
$24.23
$11.15 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 40 in profit
Earnings expanding 70.1% YoY
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Growing faster than its price suggests
Earnings expanding 64.5% YoY
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 20.0%
Areas to Watch
Expensive relative to growth rate
3.6% revenue growth
3.0% margin — thin
Operating margin of 3.9%
Revenue declined 18.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : BBY
The strongest argument for BBY centers on Return on Equity, EPS Growth, Altman Z-Score.
Bull Case : GME
The strongest argument for GME centers on PEG Ratio, EPS Growth, Profit Margin. Profitability is solid with margins at 25.2% and operating margin at 20.0%. PEG of 0.31 suggests the stock is reasonably priced for its growth.
Bear Case : BBY
The primary concerns for BBY are PEG Ratio, Revenue Growth, Profit Margin. Thin 3.0% margins leave little buffer for downturns.
Bear Case : GME
The primary concerns for GME are Revenue Growth.
Key Dynamics to Monitor
BBY profiles as a value stock while GME is a declining play — different risk/reward profiles.
GME carries more volatility with a beta of 1.62 — expect wider price swings.
BBY is growing revenue faster at 3.6% — sustainability is the question.
BBY generates stronger free cash flow (737M), providing more financial flexibility.
Bottom Line
GME scores higher overall (74/100 vs 60/100), backed by strong 25.2% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Best Buy Co. Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.
GameStop Corp.
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
GameStop Corp. The company is headquartered in Grapevine, Texas.
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