Electronic Arts Inc (EA)vsAlphabet Inc Class C (GOOG)
EA
Electronic Arts Inc
$202.67
+0.07%
COMMUNICATION SERVICES · Cap: $50.72B
GOOG
Alphabet Inc Class C
$347.31
+9.97%
COMMUNICATION SERVICES · Cap: $4.14T
Smart Verdict
WallStSmart Research — data-driven comparison
Alphabet Inc Class C generates 5414% more annual revenue ($402.84B vs $7.31B). GOOG leads profitability with a 32.8% profit margin vs 9.3%. EA appears more attractively valued with a PEG of 1.78. GOOG earns a higher WallStSmart Score of 69/100 (B-).
EA
Hold41
out of 100
Grade: D
GOOG
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-85.3%
Fair Value
$109.12
Current Price
$202.67
$93.55 premium
Margin of Safety
+9.6%
Fair Value
$384.28
Current Price
$347.31
$36.97 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.8B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 31.6%
Generating 24.6B in free cash flow
Safe zone — low bankruptcy risk
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
Premium valuation, high expectations priced in
Trading at 10.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : EA
The strongest argument for EA centers on Market Cap, Free Cash Flow.
Bull Case : GOOG
The strongest argument for GOOG centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 32.8% and operating margin at 31.6%. Revenue growth of 18.0% demonstrates continued momentum.
Bear Case : EA
The primary concerns for EA are PEG Ratio, Price/Book, Revenue Growth. A P/E of 75.6x leaves little room for execution misses.
Bear Case : GOOG
The primary concerns for GOOG are PEG Ratio, P/E Ratio, Price/Book.
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 1.13 — expect wider price swings.
GOOG is growing revenue faster at 18.0% — sustainability is the question.
GOOG generates stronger free cash flow (24.6B), providing more financial flexibility.
Bottom Line
GOOG scores higher overall (69/100 vs 41/100), backed by strong 32.8% margins and 18.0% revenue growth. Both earn "Strong 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 →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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