Electronic Arts (NASDAQ: EA) is one of 61 public companies in the “Application Software” industry, but how does it contrast to its rivals? We will compare Electronic Arts to similar businesses based on the strength of its institutional ownership, dividends, earnings, risk, valuation, analyst recommendations and profitability.
Insider & Institutional Ownership
93.8% of Electronic Arts shares are owned by institutional investors. Comparatively, 70.5% of shares of all “Application Software” companies are owned by institutional investors. 2.6% of Electronic Arts shares are owned by company insiders. Comparatively, 15.4% of shares of all “Application Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Electronic Arts and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Electronic Arts||$4.85 billion||$967.00 million||27.21|
|Electronic Arts Competitors||$916.05 million||$45.64 million||571.04|
Electronic Arts has higher revenue and earnings than its rivals. Electronic Arts is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This table compares Electronic Arts and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Electronic Arts Competitors||-26.01%||-105.96%||-13.72%|
This is a breakdown of current ratings and recommmendations for Electronic Arts and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Electronic Arts Competitors||179||1507||2851||90||2.62|
Electronic Arts currently has a consensus price target of $123.51, suggesting a potential upside of 19.47%. As a group, “Application Software” companies have a potential upside of 15.93%. Given Electronic Arts’ stronger consensus rating and higher probable upside, analysts clearly believe Electronic Arts is more favorable than its rivals.
Risk & Volatility
Electronic Arts has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Electronic Arts’ rivals have a beta of -0.36, suggesting that their average stock price is 136% less volatile than the S&P 500.
Electronic Arts beats its rivals on 10 of the 13 factors compared.
Electronic Arts Company Profile
Electronic Arts Inc. develops, markets, publishes and distributes games, content and services that can be played by consumers on a range of platforms, which include consoles, personal computers (PCs), mobile phones and tablets. The Company’s games and services are based on a portfolio of intellectual property that includes established brands, such as FIFA, Madden NFL, Star Wars, Battlefield, the Sims and Need for Speed. The Company markets and sells its games and services through retail channels and through digital distribution channels. The Company’s PC games and additional content can be downloaded directly through its Origin online platform, as well as through third-party online download stores. Its mobile, tablet and PC free-to-download games and additional content are available through third-party application storefronts, such as the Apple Application Store and Google Play.
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