Booking Holdings vs. GameStop: Which Consumer Stock Is a Better Buy for 2027?

Investors must decide whether to back a global travel giant or a gaming retailer in transition. We compare Booking Holdings (NASDAQ:BKNG) and GameStop (NYSE:GME) to see which stock offers more potential for 2027.

Booking operates a diverse network of travel sites, focusing on global accommodations and flight services. GameStop remains a leading physical retailer for video games and collectibles, currently undergoing a strategic shift in capital management. Comparing these two companies involves weighing the high-volume transaction model of online travel against the specialized, transitioning retail model of gaming hardware and software.

The case for Booking

Booking Holdings operates a global online travel platform among travel and tourism stocks, providing reservation services through brands like Booking.com and Priceline. The company serves consumers and travel providers in more than 220 countries and territories. Its business relies on relationships with hotels, airlines, and car rental agencies, while utilizing digital platforms like Alphabet Inc. (NASDAQ:GOOG) for customer traffic.

In the 12 months ended Sept. 30, 2026, revenue reached around $28.1 billion, representing revenue growth of roughly 8%. Net income for the period was approximately $7.2 billion, resulting in a net margin of about 25.5%. This steady rise in revenue continues a multi-year growth trend for the travel platform, supported by global demand for leisure and business travel.

As of its December 2025 balance sheet, the debt-to-equity ratio was roughly -3.5x. This negative value indicates that total liabilities exceed shareholder equity. The current ratio, which measures a company's ability to cover short-term debts with short-term assets, was approximately 1.3x. In the fiscal year ended Dec. 31, 2025, free cash flow was around $9.1 billion, representing the cash remaining after paying for operations and capital investments.

The case for GameStop

GameStop serves retail customers through its network of nearly 1,600 stores and various e-commerce platforms. It relies on major gaming vendors such as Nintendo (OTC:NTDOF), Sony (NYSE:SONY), and Pokémon for its inventory of consoles and software. The company also maintains relationships with third-party delivery providers to facilitate its buy-sell-trade fulfillment services for games and collectibles.

In the 12 months ended Aug. 1, 2026, revenue reached around $3.6 billion, representing a revenue growth decline of roughly 7.7%. Despite the revenue drop, net income for the period was approximately $893.3 million, yielding a net margin of about 25.2%. This result shows how strategic cost management and investment income can impact the bottom line even as sales volume decreases.

As of its January 2026 balance sheet, the debt-to-equity ratio was nearly 0.8x. This ratio compares total debt to shareholder equity to measure financial leverage. The current ratio was approximately 15.3x, which suggests a high level of liquid assets relative to short-term obligations. In the fiscal year ended Jan. 31, 2026, free cash flow reached around $597.3 million, which is the cash left over after accounting for capital expenditures.

Risk profile comparison

Booking faces intense competition from online travel companies and large technology platforms that may use generative artificial intelligence to provide direct services. The company also manages regulatory scrutiny in the European Union, where it is designated as a gatekeeper under the Digital Markets Act. This classification may lead to changes in its operations or competitive position against peers like Airbnb Inc. (NASDAQ:ABNB). Additionally, the business depends on third-party search engines and mobile operating systems for customer acquisition.

GameStop is highly dependent on specific gaming hardware and software manufacturers like Nintendo or Sony for its product supply. The company is currently executing a strategic pivot toward capital allocation and potential acquisitions like eBay Inc. (NASDAQ:EBAY). This strategy carries risks related to its investment portfolio, which includes Bitcoin (CRYPTO:BTC). Furthermore, the company relies heavily on the strategic vision of its CEO, Ryan Cohen, to navigate competition from mass merchants like Walmart Inc. (NASDAQ:WMT) and the growth of digital downloads.

Valuation comparison

While GameStop offers a lower P/S ratio, which measures market value against sales over the past twelve months, Booking provides a lower Forward P/E relative to future earnings estimates.

Valuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.

Which stock would I buy for 2027?

Booking Holdings is successfully shifting from an agency model to a primarily merchant model. That means it used to make its money as an agent--connecting travelers to a hotel and collecting a commission while the hotel manages collecting payment from the traveler. In the merchant model, Booking buys capacity from hotels and other providers on its platform and collects payment directly from the traveler. This tends to lead to fatter margins.

The company is also in excellent financial shape. It has $16 billion in cash, which makes its balance sheet investment grade. Another plus for shareholders is that the company has a $20 billion share buyback program. The brand is increasingly a destination for travelers, which means it is paying less to companies like Google for search engine visibility. Today, two-thirds of Booking.com's visitors are organic, meaning they are direct visitors rather than from paid ad traffic.

Revenue will grow about 9% this year to $29.3 billion. And net income takes a healthier 50% leap to about $8.1 billion.

GameStop has benefited greatly from its recent move to emphasize trading cards and collectibles alongside its video game business, and it is paying off. It caught many investors' eyes when it made an unsolicited bid to buy eBay earlier this year, too. Though that was rejected, reports say CEO Cohen, is still pursuing options around eBay, including striking a partnership with the business. Cohen has shown a lot of faith in his ability to boost GameStop's business. He's been a heavy buyer of company shares of late.

In its most recent quarter, net sales were $790.2 million, compared to $972.2 million in the prior year's second quarter. The decrease primarily reflects the prior-year launch of Nintendo Switch 2, planned store closures, and the divestiture of the company's France operations.

There were big positives, though: collectibles net sales were $356.3 million for the second quarter, or 45% of net sales, compared to $227.6 million, or about 23% of net sales, in the prior year's second quarter. Its pivot appears to have momentum.

GameStop is an exciting company that has proven naysayers about its business wrong for years. But Bookings' growth is too strong and its valuation too cheap, compared to competitors and to GameStop, to ignore. For 2027, go with Booking Holdings.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb, Alphabet, Bitcoin, Booking Holdings, Nintendo, Walmart, and eBay. The Motley Fool has a disclosure policy.