Comparing SJM (OTCMKTS:SJMHF) and GameStop (NYSE:GME)

SJM (OTCMKTS:SJMHF) and GameStop (NYSE:GME) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares SJM and GameStop”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SJM	$3.69 billion	0.37	$410,000.00	N/A	N/A
GameStop	$3.73 billion	2.74	$418.40 million	$1.32	17.28

GameStop has higher revenue and earnings than SJM.

Volatility & Risk

SJM has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, GameStop has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.

Profitability

This table compares SJM and GameStop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SJM	N/A	N/A	N/A
GameStop	20.45%	13.75%	7.08%

Analyst Ratings

This is a breakdown of recent ratings and price targets for SJM and GameStop, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SJM	0	2	0	0	2.00
GameStop	0	1	0	0	2.00

Insider and Institutional Ownership

29.2% of GameStop shares are held by institutional investors. 9.5% of GameStop shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

GameStop beats SJM on 9 of the 9 factors compared between the two stocks.

About SJM

SJM Holdings Limited, an investment holding company, owns, develops, and operates casinos and related facilities in Macau. The company operates through two segments, Gaming Operations; and Hotel, Catering, Retail and Leasing Operations. The Gaming Operations segment engages in rolling, non-rolling, and electronic game gaming operations. The Hotel, Catering, Retail, and Leasing Operations segment operates and manages a hotel; and offers catering, leasing, retail, and related activities. It also provides marketing and promotion, property development preparation, casino operations management, dredging, customer, retail, human resources and project management, shopping mall management, food and beverage, treasury, management, and hospitality services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.

About GameStop

GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, as well as engages in the digital asset wallet and NFT marketplace activities. The company operates stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer magazine, a print and digital gaming publication. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.