Electronic Arts Inc (EA)vsSohu.Com Inc (SOHU)
EA
Electronic Arts Inc
$200.44
-0.20%
COMMUNICATION SERVICES · Cap: $50.26B
SOHU
Sohu.Com Inc
$15.69
-0.70%
COMMUNICATION SERVICES · Cap: $472.03M
Smart Verdict
WallStSmart Research — data-driven comparison
Electronic Arts Inc generates 1189% more annual revenue ($7.53B vs $584.33M). SOHU leads profitability with a 67.4% profit margin vs 11.8%. 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+
SOHU
Buy59
out of 100
Grade: C
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
+71.1%
Fair Value
$56.71
Current Price
$15.69
$41.02 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%
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 36 in profit
Keeps 67 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Trading at 8.2x book value
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
Expensive relative to growth rate
Earnings declined 75.7%
Negative free cash flow — burning cash
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 : SOHU
The strongest argument for SOHU centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 67.4% and operating margin at -20.4%.
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 : SOHU
The primary concerns for SOHU are Market Cap, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
EA profiles as a value stock while SOHU is a mature play — different risk/reward profiles.
EA carries more volatility with a beta of 0.66 — expect wider price swings.
EA is growing revenue faster at 11.9% — sustainability is the question.
EA generates stronger free cash flow (519M), providing more financial flexibility.
Bottom Line
EA scores higher overall (63/100 vs 59/100) and 11.9% revenue growth. SOHU offers better value entry with a 71.1% margin of safety. Both earn "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.
Visit Website →Sohu.Com Inc
COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · China
Sohu.com Limited provides online media, games and search products and services on PC and mobile devices in China. The company is headquartered in Beijing, China.
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