Electronic Arts Inc (EA)vsRoblox Corp (RBLX)
EA
Electronic Arts Inc
$200.44
-0.20%
COMMUNICATION SERVICES · Cap: $50.26B
RBLX
Roblox Corp
$41.91
-6.41%
COMMUNICATION SERVICES · Cap: $32.06B
Smart Verdict
WallStSmart Research — data-driven comparison
Electronic Arts Inc generates 42% more annual revenue ($7.53B vs $5.30B). EA leads profitability with a 11.8% profit margin vs -20.7%. EA appears more attractively valued with a PEG of 1.67. EA earns a higher WallStSmart Score of 63/100 (C+).
EA
Buy63
out of 100
Grade: C+
RBLX
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-78.6%
Fair Value
$113.25
Current Price
$200.44
$87.19 premium
Margin of Safety
+14.6%
Fair Value
$80.81
Current Price
$41.91
$38.90 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 86.0% YoY
Large-cap with strong market position
Strong operational efficiency at 24.0%
Revenue surging 39.3% year-over-year
Areas to Watch
Expensive relative to growth rate
Trading at 8.2x book value
Premium valuation, high expectations priced in
0.0% earnings growth
Expensive relative to growth rate
Trading at 74.8x book value
ROE of -311.9% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : EA
The strongest argument for EA centers on EPS Growth, Market Cap, Operating Margin. Revenue growth of 11.9% demonstrates continued momentum.
Bull Case : RBLX
The strongest argument for RBLX centers on Revenue Growth. Revenue growth of 39.3% demonstrates continued momentum.
Bear Case : EA
The primary concerns for EA are PEG Ratio, Price/Book, P/E Ratio. A P/E of 57.1x leaves little room for execution misses.
Bear Case : RBLX
The primary concerns for RBLX are EPS Growth, PEG Ratio, Price/Book. Debt-to-equity of 4.15 is elevated, increasing financial risk.
Key Dynamics to Monitor
EA profiles as a value stock while RBLX is a hypergrowth play — different risk/reward profiles.
RBLX carries more volatility with a beta of 1.50 — expect wider price swings.
RBLX is growing revenue faster at 39.3% — sustainability is the question.
RBLX generates stronger free cash flow (596M), providing more financial flexibility.
Bottom Line
EA scores higher overall (63/100 vs 36/100) and 11.9% revenue growth. Both earn "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.
Visit Website →Roblox Corp
COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA
Roblox Corporation develops and operates an online entertainment platform. The company is headquartered in San Mateo, California.
Visit Website →Compare with Other ELECTRONIC GAMING & MULTIMEDIA Stocks
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