Electronic Arts Inc (EA)vsTake-Two Interactive Software Inc (TTWO)
EA
Electronic Arts Inc
$202.34
+0.36%
COMMUNICATION SERVICES · Cap: $50.46B
TTWO
Take-Two Interactive Software Inc
$193.05
+0.88%
COMMUNICATION SERVICES · Cap: $35.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Electronic Arts Inc generates 11% more annual revenue ($7.31B vs $6.56B). EA leads profitability with a 9.3% profit margin vs -60.5%. EA appears more attractively valued with a PEG of 1.76. EA earns a higher WallStSmart Score of 41/100 (D).
EA
Hold41
out of 100
Grade: D
TTWO
Avoid34
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1018.0%
Fair Value
$18.09
Current Price
$202.34
$184.25 premium
Intrinsic value data unavailable for TTWO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.8B in free cash flow
Revenue surging 24.9% year-over-year
Areas to Watch
Expensive relative to growth rate
Trading at 8.2x book value
1.0% revenue growth
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 10.2x book value
ROE of -86.2% — below average capital efficiency
Earnings declined 49.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : EA
The strongest argument for EA centers on Market Cap, Free Cash Flow.
Bull Case : TTWO
The strongest argument for TTWO centers on Revenue Growth. Revenue growth of 24.9% 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 : TTWO
The primary concerns for TTWO are PEG Ratio, Price/Book, Return on Equity.
Key Dynamics to Monitor
EA profiles as a value stock while TTWO is a growth play — different risk/reward profiles.
TTWO carries more volatility with a beta of 0.96 — expect wider price swings.
TTWO is growing revenue faster at 24.9% — sustainability is the question.
EA generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
EA scores higher overall (41/100 vs 34/100). Both earn "Hold" and "Avoid" 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 →Take-Two Interactive Software Inc
COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA
Take-Two Interactive Software, Inc. is an American video game holding company based in New York City. The company owns two major publishing labels, Rockstar Games and 2K, which operate internal game development studios.
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