GameStop (NYSE:GME – Get Free Report) and Full House Resorts (NASDAQ:FLL – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
Institutional and Insider Ownership
29.2% of GameStop shares are held by institutional investors. Comparatively, 37.7% of Full House Resorts shares are held by institutional investors. 8.6% of GameStop shares are held by insiders. Comparatively, 9.4% of Full House Resorts shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares GameStop and Full House Resorts”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GameStop | $3.82 billion | 2.46 | $131.30 million | $0.82 | 25.58 |
| Full House Resorts | $292.07 million | 0.30 | -$40.67 million | ($1.12) | -2.19 |
GameStop has higher revenue and earnings than Full House Resorts. Full House Resorts is trading at a lower price-to-earnings ratio than GameStop, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
GameStop has a beta of -1.23, suggesting that its stock price is 223% less volatile than the S&P 500. Comparatively, Full House Resorts has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for GameStop and Full House Resorts, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GameStop | 1 | 1 | 0 | 0 | 1.50 |
| Full House Resorts | 1 | 1 | 3 | 0 | 2.40 |
GameStop presently has a consensus price target of $13.50, suggesting a potential downside of 35.64%. Full House Resorts has a consensus price target of $4.50, suggesting a potential upside of 83.67%. Given Full House Resorts’ stronger consensus rating and higher probable upside, analysts plainly believe Full House Resorts is more favorable than GameStop.
Profitability
This table compares GameStop and Full House Resorts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GameStop | 11.08% | 9.75% | 5.80% |
| Full House Resorts | -13.38% | -150.12% | -6.11% |
Summary
GameStop beats Full House Resorts on 8 of the 14 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 Full House Resorts
Full House Resorts, Inc. owns, leases, operates, develops, manages, and invests in casinos, and related hospitality and entertainment facilities in the United States. It operates through Midwest & South, West, and Contracted Sports Wagering segments. The company's properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Rising Star Casino Resort in Rising Sun, Indiana; Bronco Billy's Casino and Chamonix Casino Hotel in Cripple Creek, Colorado; Stockman's Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. It also offers online sports wagering services. The company was incorporated in 1987 and is headquartered in Las Vegas, Nevada.
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