Best Buy Stock vs Competition: Who Wins?
Best Buy’s stock has significantly underperformed over the past year amidst a challenging consumer electronics market and intense competition. A closer look reveals negative LTM revenue growth and modest profitability, despite a somewhat moderate valuation. However, limited upside is apparent as shifting consumer spending habits and increased online rivalry continue to pressure traditional retail.
- BBY’s 4.2% operating margin, lowest among peers, reflects retail competition and deal-driven consumers, unlike AAPL’s 31.9% from premium products & high-margin services.
- BBY’s -0.9% revenue decline reflects weak consumer demand for electronics, contrasting with peers like HPE & CSCO benefiting from AI infrastructure growth.
- BBY’s stock is down 18.8%, underperforming peers. Its 22.2 PE is high given consumer spending headwinds, contrasting with tech peers driven by AI and services.
Here’s how Best Buy stacks up across size, valuation, and profitability versus key peers.
| BBY | HPQ | HPE | IBM | CSCO | AAPL | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 14.3 | 21.4 | 32.4 | 285.5 | 307.7 | 4,079.8 |
| Revenue ($ Bil) | 41.8 | 55.3 | 34.3 | 65.4 | 57.7 | 408.6 |
| PE Ratio | 22.2 | 8.4 | 569.0 | 36.1 | 29.8 | 41.1 |
| LTM Revenue Growth | -0.9% | 3.2% | 13.8% | 4.5% | 8.9% | 6.0% |
| LTM Operating Margin | 4.2% | 6.6% | 4.8% | 17.7% | 22.5% | 31.9% |
| LTM FCF Margin | 3.6% | 5.1% | 1.8% | 18.1% | 22.1% | 23.5% |
| 12M Market Return | -18.8% | -28.7% | 15.4% | 40.8% | 33.9% | 7.6% |
For more details on Best Buy, read Buy or Sell BBY Stock. Below we compare BBY’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| BBY | -0.9% | -4.4% | -6.1% | -10.6% | |
| HPQ | 3.2% | 3.2% | -0.3% | -14.6% | |
| HPE | 13.8% | 13.8% | 3.4% | 2.2% | |
| IBM | 4.5% | – | 1.4% | 2.2% | 5.5% |
| CSCO | 8.9% | 5.3% | -5.6% | 10.6% | |
| AAPL | 6.0% | – | 2.0% | -2.8% | 7.8% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| BBY | 4.2% | 4.2% | 4.0% | 4.2% | |
| HPQ | 6.6% | 6.6% | 7.8% | 7.9% | |
| HPE | 4.8% | 4.8% | 8.3% | 8.4% | |
| IBM | 17.7% | – | 16.1% | 15.9% | 13.5% |
| CSCO | 22.5% | 22.1% | 24.1% | 27.3% | |
| AAPL | 31.9% | – | 31.5% | 29.8% | 30.3% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| BBY | 22.2 | 19.9 | 13.7 | 12.7 | |
| HPQ | 8.4 | 12.2 | 10.6 | 8.2 | |
| HPE | 569.0 | 495.9 | 8.6 | 10.2 | |
| IBM | 36.1 | – | 33.6 | 19.9 | 77.5 |
| CSCO | 29.8 | 23.1 | 19.8 | 15.5 | |
| AAPL | 41.1 | – | 41.0 | 31.3 | 21.1 |
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