WallStSmart

Electronic Arts Inc (EA)vsMotorsport Gaming Us LLC (MSGM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Electronic Arts Inc generates 77425% more annual revenue ($7.31B vs $9.42M). MSGM leads profitability with a 30.6% profit margin vs 9.3%. MSGM trades at a lower P/E of 7.7x. MSGM earns a higher WallStSmart Score of 67/100 (B-).

EA

Hold

41

out of 100

Grade: D

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

MSGM

Strong Buy

67

out of 100

Grade: B-

Growth: 8.0Profit: 9.5Value: 8.3Quality: 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
MSGMUndervalued (+83.1%)

Margin of Safety

+83.1%

Fair Value

$19.66

Current Price

$4.18

$15.48 discount

UndervaluedFair: $19.66Overvalued

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

MSGM6 strengths · Avg: 9.3/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
70.3%10/10

Every $100 of equity generates 70 in profit

Profit MarginProfitability
30.6%10/10

Keeps 31 of every $100 in revenue as profit

Revenue GrowthGrowth
71.9%10/10

Revenue surging 71.9% year-over-year

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

EPS GrowthGrowth
42.1%8/10

Earnings expanding 42.1% 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

MSGM1 concerns · Avg: 3.0/10
Market CapQuality
$16.50M3/10

Smaller company, higher risk/reward

Comparative Analysis Report

WallStSmart Research

Bull Case : EA

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

Bull Case : MSGM

The strongest argument for MSGM centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 30.6% and operating margin at 25.8%. Revenue growth of 71.9% 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 : MSGM

The primary concerns for MSGM are Market Cap.

Key Dynamics to Monitor

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

MSGM carries more volatility with a beta of 1.81 — expect wider price swings.

MSGM is growing revenue faster at 71.9% — sustainability is the question.

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

Bottom Line

MSGM scores higher overall (67/100 vs 41/100), backed by strong 30.6% margins and 71.9% revenue growth. Both earn "Strong Buy" 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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Motorsport Gaming Us LLC

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA

Motorsport Games Inc. develops and publishes multiplatform racing video games in the United States. The company is headquartered in Miami, Florida.

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