WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gravity Co Ltd generates 7067% more annual revenue ($562.28B vs $7.85B). GRVY leads profitability with a 15.3% profit margin vs 13.8%. GRVY trades at a lower P/E of 8.1x. EA earns a higher WallStSmart Score of 67/100 (B-).

EA

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 3.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.23

GRVY

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 6.7Quality: 9.0
Piotroski: 4/9Altman Z: 6.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EASignificantly Overvalued (-80.5%)

Margin of Safety

-80.5%

Fair Value

$112.02

Current Price

$209.70

$97.68 premium

UndervaluedFair: $112.02Overvalued

Intrinsic value data unavailable for GRVY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EA5 strengths · Avg: 8.8/10
EPS GrowthGrowth
97.5%10/10

Earnings expanding 97.5% YoY

Market CapQuality
$52.92B9/10

Large-cap with strong market position

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

Revenue GrowthGrowth
18.9%8/10

18.9% revenue growth

GRVY5 strengths · Avg: 10.0/10
P/E RatioValuation
8.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
83.8%10/10

Earnings expanding 83.8% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.8610/10

Safe zone — low bankruptcy risk

Areas to Watch

EA3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
59.9x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-318.00M2/10

Negative free cash flow — burning cash

GRVY2 concerns · Avg: 2.5/10
Market CapQuality
$506.57M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-4.6%2/10

Revenue declined 4.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : EA

The strongest argument for EA centers on EPS Growth, Market Cap, Debt/Equity. Revenue growth of 18.9% demonstrates continued momentum. PEG of 1.30 suggests the stock is reasonably priced for its growth.

Bull Case : GRVY

The strongest argument for GRVY centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 15.3% and operating margin at 15.1%.

Bear Case : EA

The primary concerns for EA are Piotroski F-Score, P/E Ratio, Free Cash Flow. A P/E of 59.9x leaves little room for execution misses.

Bear Case : GRVY

The primary concerns for GRVY are Market Cap, Revenue Growth.

Key Dynamics to Monitor

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

GRVY carries more volatility with a beta of 1.02 — expect wider price swings.

EA is growing revenue faster at 18.9% — sustainability is the question.

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

Bottom Line

EA scores higher overall (67/100 vs 61/100) and 18.9% revenue growth. Both earn "Strong 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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