Electronic Arts Inc (EA)vsSohu.Com Inc (SOHU)
EA
Electronic Arts Inc
$202.34
+0.36%
COMMUNICATION SERVICES · Cap: $50.46B
SOHU
Sohu.Com Inc
$16.32
+3.03%
COMMUNICATION SERVICES · Cap: $444.67M
Smart Verdict
WallStSmart Research — data-driven comparison
Electronic Arts Inc generates 1232% more annual revenue ($7.31B vs $548.59M). SOHU leads profitability with a 22.7% profit margin vs 9.3%. EA appears more attractively valued with a PEG of 1.76. SOHU earns a higher WallStSmart Score of 50/100 (C-).
EA
Hold41
out of 100
Grade: D
SOHU
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1018.0%
Fair Value
$18.09
Current Price
$202.34
$184.25 premium
Margin of Safety
+34.8%
Fair Value
$25.16
Current Price
$16.32
$8.84 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.8B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 23 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Trading at 8.2x book value
1.0% revenue growth
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
Expensive relative to growth rate
Revenue declined 26.7%
Earnings declined 75.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : EA
The strongest argument for EA centers on Market Cap, Free Cash Flow.
Bull Case : SOHU
The strongest argument for SOHU centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 22.7% and operating margin at -17.7%.
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 : SOHU
The primary concerns for SOHU are Market Cap, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
EA profiles as a value stock while SOHU is a declining play — different risk/reward profiles.
EA carries more volatility with a beta of 0.75 — expect wider price swings.
EA is growing revenue faster at 1.0% — sustainability is the question.
EA generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
SOHU scores higher overall (50/100 vs 41/100), backed by strong 22.7% margins. Both earn "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 →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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