Electronic Arts Inc (EA)vsAlphabet Inc Class C (GOOG)
EA
Electronic Arts Inc
$208.91
+0.02%
COMMUNICATION SERVICES · Cap: $52.39B
GOOG
Alphabet Inc Class C
$335.76
+0.95%
COMMUNICATION SERVICES · Cap: $4.17T
Smart Verdict
WallStSmart Research — data-driven comparison
Alphabet Inc Class C generates 5510% more annual revenue ($422.50B vs $7.53B). GOOG leads profitability with a 37.9% profit margin vs 11.8%. EA appears more attractively valued with a PEG of 1.30. GOOG earns a higher WallStSmart Score of 75/100 (B).
EA
Buy65
out of 100
Grade: C+
GOOG
Strong Buy75
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-87.5%
Fair Value
$107.89
Current Price
$208.91
$101.02 premium
Margin of Safety
+27.3%
Fair Value
$449.28
Current Price
$335.76
$113.52 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 85.3% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Strong operational efficiency at 24.0%
Mega-cap, among the largest globally
Every $100 of equity generates 38 in profit
Keeps 38 of every $100 in revenue as profit
Strong operational efficiency at 36.1%
Earnings expanding 82.0% YoY
Safe zone — low bankruptcy risk
Areas to Watch
Weak financial health signals
Premium valuation, high expectations priced in
Moderate valuation
Trading at 8.5x book value
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : EA
The strongest argument for EA centers on EPS Growth, Market Cap, Debt/Equity. Revenue growth of 11.9% demonstrates continued momentum. PEG of 1.30 suggests the stock is reasonably priced for its growth.
Bull Case : GOOG
The strongest argument for GOOG centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 36.1%. Revenue growth of 21.8% demonstrates continued momentum.
Bear Case : EA
The primary concerns for EA are Piotroski F-Score, P/E Ratio. A P/E of 59.5x leaves little room for execution misses.
Bear Case : GOOG
The primary concerns for GOOG are P/E Ratio, Price/Book, Free Cash Flow.
Key Dynamics to Monitor
EA profiles as a value stock while GOOG is a growth play — different risk/reward profiles.
GOOG carries more volatility with a beta of 1.25 — expect wider price swings.
GOOG is growing revenue faster at 21.8% — sustainability is the question.
EA generates stronger free cash flow (519M), providing more financial flexibility.
Bottom Line
GOOG scores higher overall (75/100 vs 65/100), backed by strong 37.9% margins and 21.8% revenue growth. Both earn "Strong 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 →Alphabet Inc Class C
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
Visit Website →Compare with Other ELECTRONIC GAMING & MULTIMEDIA Stocks
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