Electronic Arts (NASDAQ: EA) is one of 60 public companies in the “Application Software” industry, but how does it compare to its rivals? We will compare Electronic Arts to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, institutional ownership, profitability and earnings.

Profitability

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 23.35% 28.92% 15.51%
Electronic Arts Competitors -66.98% -104.54% -16.79%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Electronic Arts and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electronic Arts 0 3 22 0 2.88
Electronic Arts Competitors 175 1483 2786 86 2.61

Electronic Arts presently has a consensus price target of $123.51, suggesting a potential upside of 10.01%. As a group, “Application Software” companies have a potential upside of 13.04%. Given Electronic Arts’ rivals higher possible upside, analysts clearly believe Electronic Arts has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

94.6% of Electronic Arts shares are held by institutional investors. Comparatively, 68.8% of shares of all “Application Software” companies are held by institutional investors. 2.6% of Electronic Arts shares are held by insiders. Comparatively, 15.0% of shares of all “Application Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Electronic Arts has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Electronic Arts’ rivals have a beta of 4.57, indicating that their average stock price is 357% more volatile than the S&P 500.

Earnings & Valuation

This table compares Electronic Arts and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Electronic Arts $4.85 billion $967.00 million 29.62
Electronic Arts Competitors $980.90 million $67.84 million 433.97

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.

Summary

Electronic Arts beats its rivals on 8 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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