WallStSmart

Electronic Arts Inc (EA)vsGravity Co Ltd (GRVY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gravity Co Ltd generates 7469% more annual revenue ($569.99B vs $7.53B). GRVY leads profitability with a 13.1% profit margin vs 11.8%. GRVY trades at a lower P/E of 8.3x. GRVY earns a higher WallStSmart Score of 65/100 (C+).

EA

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 3.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.22

GRVY

Buy

65

out of 100

Grade: C+

Growth: 8.0Profit: 6.0Value: 6.7Quality: 9.0
Piotroski: 4/9Altman Z: 6.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EASignificantly Overvalued (-89.9%)

Margin of Safety

-89.9%

Fair Value

$106.49

Current Price

$203.00

$96.51 premium

UndervaluedFair: $106.49Overvalued

Intrinsic value data unavailable for GRVY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EA4 strengths · Avg: 9.0/10
EPS GrowthGrowth
85.3%10/10

Earnings expanding 85.3% YoY

Market CapQuality
$50.65B9/10

Large-cap with strong market position

Debt/EquityHealth
0.229/10

Conservative balance sheet, low leverage

Operating MarginProfitability
24.0%8/10

Strong operational efficiency at 24.0%

GRVY6 strengths · Avg: 9.3/10
P/E RatioValuation
8.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.8610/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
18.2%8/10

18.2% revenue growth

EPS GrowthGrowth
33.4%8/10

Earnings expanding 33.4% YoY

Areas to Watch

EA2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
57.5x2/10

Premium valuation, high expectations priced in

GRVY2 concerns · Avg: 3.0/10
Market CapQuality
$404.36M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.6%3/10

ROE of 5.6% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : EA

The strongest argument for EA centers on EPS Growth, Market Cap, Debt/Equity. Revenue growth of 11.9% demonstrates continued momentum. PEG of 1.25 suggests the stock is reasonably priced for its growth.

Bull Case : GRVY

The strongest argument for GRVY centers on P/E Ratio, Price/Book, Debt/Equity. Revenue growth of 18.2% demonstrates continued momentum.

Bear Case : EA

The primary concerns for EA are Piotroski F-Score, P/E Ratio. A P/E of 57.5x leaves little room for execution misses.

Bear Case : GRVY

The primary concerns for GRVY are Market Cap, Return on Equity.

Key Dynamics to Monitor

EA profiles as a value stock while GRVY is a growth play — different risk/reward profiles.

GRVY carries more volatility with a beta of 1.01 — expect wider price swings.

GRVY is growing revenue faster at 18.2% — sustainability is the question.

Monitor ELECTRONIC GAMING & MULTIMEDIA industry trends, competitive dynamics, and regulatory changes.

Bottom Line

EA scores higher overall (65/100 vs 65/100) and 11.9% revenue growth. Both earn "Buy" and "Buy" 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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Gravity Co Ltd

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA

Gravity Co., Ltd. develops, publishes, and distributes online games primarily in South Korea, Taiwan, Thailand, the Philippines, and internationally. The company is headquartered in Seoul, South Korea.

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