Electronic Arts Inc (EA)vsSpotify Technology SA (SPOT)
EA
Electronic Arts Inc
$203.00
-0.20%
COMMUNICATION SERVICES · Cap: $50.65B
SPOT
Spotify Technology SA
$496.95
+0.68%
COMMUNICATION SERVICES · Cap: $99.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Spotify Technology SA generates 133% more annual revenue ($17.53B vs $7.53B). SPOT leads profitability with a 15.4% profit margin vs 11.8%. EA appears more attractively valued with a PEG of 1.25. EA earns a higher WallStSmart Score of 65/100 (C+).
EA
Buy65
out of 100
Grade: C+
SPOT
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.9%
Fair Value
$106.49
Current Price
$203.00
$96.51 premium
Margin of Safety
-65.0%
Fair Value
$295.16
Current Price
$496.95
$201.79 premium
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%
Every $100 of equity generates 34 in profit
Earnings expanding 222.4% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Areas to Watch
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 10.4x book value
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 1.25 suggests the stock is reasonably priced for its growth.
Bull Case : SPOT
The strongest argument for SPOT centers on Return on Equity, EPS Growth, Debt/Equity. Profitability is solid with margins at 15.4% and operating margin at 15.8%.
Bear Case : EA
The primary concerns for EA are Piotroski F-Score, P/E Ratio. A P/E of 57.5x leaves little room for execution misses.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
EA profiles as a value stock while SPOT is a mature play — different risk/reward profiles.
SPOT carries more volatility with a beta of 1.55 — expect wider price swings.
EA is growing revenue faster at 11.9% — sustainability is the question.
SPOT generates stronger free cash flow (845M), providing more financial flexibility.
Bottom Line
EA scores higher overall (65/100 vs 64/100) and 11.9% revenue growth. Both earn "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 →Spotify Technology SA
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.
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