Critical Review: CYREN (CYRN) & Electronic Arts (EA)
Electronic Arts (NASDAQ: EA) and CYREN (NASDAQ:CYRN) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
Earnings & Valuation
This table compares Electronic Arts and CYREN’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Electronic Arts||$4.85 billion||6.69||$967.00 million||$3.80||27.70|
|CYREN||$30.98 million||3.86||-$6.21 million||($0.27)||-8.89|
Electronic Arts has higher revenue and earnings than CYREN. CYREN is trading at a lower price-to-earnings ratio than Electronic Arts, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
93.8% of Electronic Arts shares are held by institutional investors. Comparatively, 22.6% of CYREN shares are held by institutional investors. 2.6% of Electronic Arts shares 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.
This table compares Electronic Arts and CYREN’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings for Electronic Arts and CYREN, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Electronic Arts presently has a consensus target price of $123.51, suggesting a potential upside of 17.33%. Given Electronic Arts’ higher probable upside, equities analysts clearly believe Electronic Arts is more favorable than CYREN.
Volatility and Risk
Electronic Arts has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, CYREN has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
Electronic Arts beats CYREN on 11 of the 12 factors compared between the two stocks.
About Electronic Arts
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.
CYREN Ltd. (CYREN) is engaged in developing and marketing information security solutions for protecting Web, e-mail and mobile transactions. The Company is a Security-as-a-Service provider of integrated cloud-based security technology solutions that mitigate cyber threats, malware attacks, information leaks, legal liability and productivity loss through the application of cyber intelligence. It delivers security services to a range of customers and original equipment manufacturer, and service provider distribution partners, including network and security vendors offering content security gateways, unified threat management solutions and antivirus solutions, and to service providers, such as Software-as-a-Service vendors, Web hosting providers and Internet service providers. Its technologies include CYREN GlobalView Cloud and Recurrent Pattern Detection. Its offerings include CYREN WebSecurity (CWS), CYREN EmailSecurity, Cyber Intelligence Suite and Embedded Solutions.
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