GameStop Corp. (GME)vsThe Home Depot Inc (HD)
GME
GameStop Corp.
$21.80
-2.11%
CONSUMER CYCLICAL · Cap: $9.77B
HD
The Home Depot Inc
$310.78
+2.08%
CONSUMER CYCLICAL · Cap: $336.21B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 4363% more annual revenue ($166.59B vs $3.73B). GME leads profitability with a 20.4% profit margin vs 8.4%. GME appears more attractively valued with a PEG of 0.31. GME earns a higher WallStSmart Score of 74/100 (B).
GME
Strong Buy74
out of 100
Grade: B
HD
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-58.6%
Fair Value
$15.26
Current Price
$21.80
$6.54 premium
Margin of Safety
-59.0%
Fair Value
$212.07
Current Price
$310.78
$98.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 633.0% YoY
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Areas to Watch
ROE of 7.7% — below average capital efficiency
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : GME
The strongest argument for GME centers on PEG Ratio, EPS Growth, Profit Margin. Profitability is solid with margins at 20.4% and operating margin at 16.6%. Revenue growth of 14.1% demonstrates continued momentum.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : GME
The primary concerns for GME are Return on Equity.
Bear Case : HD
The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.
Key Dynamics to Monitor
GME profiles as a mature stock while HD is a value play — different risk/reward profiles.
GME carries more volatility with a beta of 1.77 — expect wider price swings.
GME is growing revenue faster at 14.1% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Bottom Line
GME scores higher overall (74/100 vs 51/100), backed by strong 20.4% margins and 14.1% revenue growth. 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.
GameStop Corp.
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
GameStop Corp. The company is headquartered in Grapevine, Texas.
The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
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