Contrasting GameStop (NYSE:GME) & ATRenew (NYSE:RERE)

GameStop (NYSE:GME) and ATRenew (NYSE:RERE) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GameStop	25.16%	13.57%	7.16%
ATRenew	2.01%	12.32%	8.30%

Analyst Ratings

This is a summary of recent ratings and price targets for GameStop and ATRenew, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameStop	0	2	1	1	2.75
ATRenew	0	1	2	0	2.67

GameStop presently has a consensus price target of $32.00, suggesting a potential upside of 24.72%. ATRenew has a consensus price target of $5.50, suggesting a potential upside of 28.96%. Given ATRenew’s higher probable upside, analysts plainly believe ATRenew is more favorable than GameStop.

Risk & Volatility

GameStop has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, ATRenew has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Insider & Institutional Ownership

29.2% of GameStop shares are held by institutional investors. Comparatively, 19.3% of ATRenew shares are held by institutional investors. 9.5% of GameStop shares are held by company insiders. Comparatively, 10.7% of ATRenew shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares GameStop and ATRenew”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GameStop	$3.63 billion	3.57	$418.40 million	$1.52	16.88
ATRenew	$3.01 billion	0.31	$48.09 million	$0.29	14.71

GameStop has higher revenue and earnings than ATRenew. ATRenew is trading at a lower price-to-earnings ratio than GameStop, indicating that it is currently the more affordable of the two stocks.

Summary

GameStop beats ATRenew on 11 of the 15 factors compared between the two stocks.

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.

About ATRenew

ATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.