Electronic Arts Inc (EA)vsReddit, Inc. (RDDT)
EA
Electronic Arts Inc
$209.70
-0.10%
COMMUNICATION SERVICES · Cap: $52.92B
RDDT
Reddit, Inc.
$153.95
-0.91%
COMMUNICATION SERVICES · Cap: $31.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Electronic Arts Inc generates 182% more annual revenue ($7.85B vs $2.78B). RDDT leads profitability with a 31.4% profit margin vs 13.8%. RDDT appears more attractively valued with a PEG of 1.15. RDDT earns a higher WallStSmart Score of 75/100 (B+).
EA
Strong Buy67
out of 100
Grade: B-
RDDT
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-80.5%
Fair Value
$112.02
Current Price
$209.70
$97.68 premium
Intrinsic value data unavailable for RDDT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 97.5% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Strong operational efficiency at 25.8%
18.9% revenue growth
Keeps 31 of every $100 in revenue as profit
Revenue surging 61.1% year-over-year
Earnings expanding 177.8% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Areas to Watch
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Trading at 9.0x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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 : RDDT
The strongest argument for RDDT centers on Profit Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 31.4% and operating margin at 28.8%. Revenue growth of 61.1% 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 : RDDT
The primary concerns for RDDT are Price/Book, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.
Key Dynamics to Monitor
RDDT carries more volatility with a beta of 2.03 — expect wider price swings.
RDDT is growing revenue faster at 61.1% — sustainability is the question.
RDDT generates stronger free cash flow (261M), providing more financial flexibility.
Monitor ELECTRONIC GAMING & MULTIMEDIA industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RDDT scores higher overall (75/100 vs 67/100), backed by strong 31.4% margins and 61.1% 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.
Visit Website →Reddit, Inc.
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Reddit, Inc. operates a website that organizes digital communities. The company is headquartered in San Francisco, California.
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