WallStSmart

Electronic Arts Inc (EA)vsGCL Global Holdings Ltd Ordinary Shares (GCL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Electronic Arts Inc generates 3747% more annual revenue ($7.31B vs $189.89M). EA leads profitability with a 9.3% profit margin vs 0.5%. GCL trades at a lower P/E of 57.1x. GCL earns a higher WallStSmart Score of 47/100 (D+).

EA

Hold

41

out of 100

Grade: D

Growth: 3.3Profit: 6.0Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 2.40

GCL

Hold

47

out of 100

Grade: D+

Growth: 10.0Profit: 3.0Value: 3.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EASignificantly Overvalued (-1018.0%)

Margin of Safety

-1018.0%

Fair Value

$18.09

Current Price

$202.34

$184.25 premium

UndervaluedFair: $18.09Overvalued
GCLSignificantly Overvalued (-55.8%)

Margin of Safety

-55.8%

Fair Value

$0.47

Current Price

$0.56

$0.09 premium

UndervaluedFair: $0.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EA2 strengths · Avg: 8.5/10
Market CapQuality
$50.46B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.77B8/10

Generating 1.8B in free cash flow

GCL3 strengths · Avg: 8.7/10
Revenue GrowthGrowth
93.9%10/10

Revenue surging 93.9% year-over-year

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

EPS GrowthGrowth
37.0%8/10

Earnings expanding 37.0% YoY

Areas to Watch

EA4 concerns · Avg: 3.5/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

Price/BookValuation
8.2x4/10

Trading at 8.2x book value

Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

P/E RatioValuation
75.8x2/10

Premium valuation, high expectations priced in

GCL4 concerns · Avg: 2.8/10
Market CapQuality
$70.13M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.2%3/10

ROE of 1.2% — below average capital efficiency

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

P/E RatioValuation
57.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : EA

The strongest argument for EA centers on Market Cap, Free Cash Flow.

Bull Case : GCL

The strongest argument for GCL centers on Revenue Growth, Price/Book, EPS Growth. Revenue growth of 93.9% demonstrates continued momentum.

Bear Case : EA

The primary concerns for EA are PEG Ratio, Price/Book, Revenue Growth. A P/E of 75.8x leaves little room for execution misses.

Bear Case : GCL

The primary concerns for GCL are Market Cap, Return on Equity, Profit Margin. A P/E of 57.1x leaves little room for execution misses. Thin 0.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

EA profiles as a value stock while GCL is a hypergrowth play — different risk/reward profiles.

EA carries more volatility with a beta of 0.75 — expect wider price swings.

GCL is growing revenue faster at 93.9% — sustainability is the question.

EA generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

GCL scores higher overall (47/100 vs 41/100) and 93.9% revenue growth. Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Electronic Arts Inc

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA

Electronic Arts Inc. (EA) is an American video game company headquartered in Redwood City, California. It is the second-largest gaming company in the Americas and Europe by revenue and market capitalization after Activision Blizzard and ahead of Take-Two Interactive, and Ubisoft as of May 2020.

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GCL Global Holdings Ltd Ordinary Shares

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA

GCL Global Holdings Ltd, engages in the development, publishing, marketing, retails, and distribution of video games, activation keys, and entertainment content in Asia, Europe, and the United States. The company is headquartered in Singapore.

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