Comparing Electronic Arts (NASDAQ:EA) and GCL Global (NASDAQ:GCL)

Electronic Arts (NASDAQ:EA) and GCL Global (NASDAQ:GCL) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Electronic Arts and GCL Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electronic Arts	1	19	3	0	2.09
GCL Global	1	0	0	0	1.00

Electronic Arts currently has a consensus price target of $188.30, suggesting a potential downside of 7.67%. Given Electronic Arts’ stronger consensus rating and higher possible upside, research analysts plainly believe Electronic Arts is more favorable than GCL Global.

Earnings and Valuation

This table compares Electronic Arts and GCL Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electronic Arts	$7.46 billion	6.84	$1.12 billion	$2.66	76.67
GCL Global	$142.07 million	0.52	$5.59 million	($0.02)	-30.28

Electronic Arts has higher revenue and earnings than GCL Global. GCL Global is trading at a lower price-to-earnings ratio than Electronic Arts, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Electronic Arts and GCL Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Electronic Arts	9.31%	23.53%	11.78%
GCL Global	N/A	N/A	N/A

Institutional and Insider Ownership

90.2% of Electronic Arts shares are owned by institutional investors. Comparatively, 36.6% of GCL Global shares are owned by institutional investors. 0.2% of Electronic Arts shares are owned by insiders. Comparatively, 49.4% of GCL Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Electronic Arts has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, GCL Global has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Summary

Electronic Arts beats GCL Global on 13 of the 14 factors compared between the two stocks.

About Electronic Arts

Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands. The company licenses its games to third parties to distribute and host its games. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.

About GCL Global

GCL Global Holdings Ltd. unites people through immersive games and entertainment experiences, enabling creators to deliver engaging content and fun gameplay experiences to gaming communities worldwide with a strategic focus on the rapidly expanding Asian gaming market.

Drawing on a deep understanding of gaming trends and market dynamics, GCL Group leverages its diverse portfolio of digital and physical content to bridge cultures and audiences by introducing Asian-developed IP to a global audience across consoles, PCs, and streaming platforms.