Electronic Arts Inc (EA)vsSohu.Com Inc (SOHU)
EA
Electronic Arts Inc
$209.70
-0.10%
COMMUNICATION SERVICES · Cap: $52.92B
SOHU
Sohu.Com Inc
$13.68
+1.30%
COMMUNICATION SERVICES · Cap: $413.40M
Smart Verdict
WallStSmart Research — data-driven comparison
Electronic Arts Inc generates 1209% more annual revenue ($7.85B vs $599.25M). SOHU leads profitability with a 38.2% profit margin vs 13.8%. EA appears more attractively valued with a PEG of 1.30. EA earns a higher WallStSmart Score of 67/100 (B-).
EA
Strong Buy67
out of 100
Grade: B-
SOHU
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-80.5%
Fair Value
$112.02
Current Price
$209.70
$97.68 premium
Margin of Safety
+67.5%
Fair Value
$50.53
Current Price
$13.68
$36.86 discount
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
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 38 of every $100 in revenue as profit
Safe zone — low bankruptcy risk
Areas to Watch
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Smaller company, higher risk/reward
Expensive relative to growth rate
Earnings declined 75.7%
Operating margin of -13.5%
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 : SOHU
The strongest argument for SOHU centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 38.2% and operating margin at -13.5%.
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 : SOHU
The primary concerns for SOHU are Market Cap, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
EA profiles as a growth stock while SOHU is a mature play — different risk/reward profiles.
EA carries more volatility with a beta of 0.64 — expect wider price swings.
EA is growing revenue faster at 18.9% — sustainability is the question.
Monitor ELECTRONIC GAMING & MULTIMEDIA industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EA scores higher overall (67/100 vs 55/100) and 18.9% revenue growth. SOHU offers better value entry with a 67.5% margin of safety. 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 →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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