WallStSmart

Electronic Arts Inc (EA)vsMeta Platforms Inc. (META)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Meta Platforms Inc. generates 2809% more annual revenue ($228.25B vs $7.85B). META leads profitability with a 29.8% profit margin vs 13.8%. META appears more attractively valued with a PEG of 0.85. META earns a higher WallStSmart Score of 71/100 (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

META

Strong Buy

71

out of 100

Grade: B

Growth: 6.0Profit: 9.5Value: 8.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.88
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
METAUndervalued (+31.3%)

Margin of Safety

+31.3%

Fair Value

$943.81

Current Price

$648.03

$295.78 discount

UndervaluedFair: $943.81Overvalued

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

META6 strengths · Avg: 9.0/10
Market CapQuality
$1.65T10/10

Mega-cap, among the largest globally

Operating MarginProfitability
34.8%10/10

Strong operational efficiency at 34.8%

Return on EquityProfitability
26.1%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
29.8%9/10

Keeps 30 of every $100 in revenue as profit

PEG RatioValuation
0.858/10

Growing faster than its price suggests

Revenue GrowthGrowth
28.0%8/10

Revenue surging 28.0% year-over-year

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

META2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-13.4%2/10

Earnings declined 13.4%

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 : META

The strongest argument for META centers on Market Cap, Operating Margin, Return on Equity. Profitability is solid with margins at 29.8% and operating margin at 34.8%. Revenue growth of 28.0% demonstrates continued momentum.

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 : META

The primary concerns for META are Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

META carries more volatility with a beta of 1.24 — expect wider price swings.

META is growing revenue faster at 28.0% — sustainability is the question.

META generates stronger free cash flow (1.7B), providing more financial flexibility.

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

Bottom Line

META scores higher overall (71/100 vs 67/100), backed by strong 29.8% margins and 28.0% revenue growth. Both earn "Strong Buy" and "Strong 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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Meta Platforms Inc.

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, PCs, virtual reality headsets, wearables and home devices around the world. The company is headquartered in Menlo Park, California.

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