DouYu International (NASDAQ:DOYU) and GameStop (NYSE:GME) Head-To-Head Review

DouYu International (NASDAQ:DOYU) and GameStop (NYSE:GME) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

17.9% of DouYu International shares are held by institutional investors. Comparatively, 29.2% of GameStop shares are held by institutional investors. 17.3% of DouYu International shares are held by company insiders. Comparatively, 8.6% of GameStop shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

DouYu International has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, GameStop has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DouYu International	$546.09 million	0.26	-$4.16 million	($0.13)	-35.92
GameStop	$3.63 billion	2.71	$418.40 million	$0.75	29.23

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DouYu International	-0.73%	2.04%	1.29%
GameStop	11.53%	12.47%	6.73%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DouYu International	1	1	0	0	1.50
GameStop	1	1	0	0	1.50

DouYu International presently has a consensus target price of $7.00, indicating a potential upside of 49.89%. GameStop has a consensus target price of $13.50, indicating a potential downside of 38.42%. Given DouYu International’s higher probable upside, equities research analysts plainly believe DouYu International is more favorable than GameStop.

Summary

GameStop beats DouYu International on 10 of the 12 factors compared between the two stocks.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.

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.