Electronic Arts Inc (EA)vsSpotify Technology SA (SPOT)
EA
Electronic Arts Inc
$202.67
+0.07%
COMMUNICATION SERVICES · Cap: $50.72B
SPOT
Spotify Technology SA
$443.57
+2.16%
COMMUNICATION SERVICES · Cap: $106.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Spotify Technology SA generates 135% more annual revenue ($17.19B vs $7.31B). SPOT leads profitability with a 12.9% profit margin vs 9.3%. EA appears more attractively valued with a PEG of 1.68. SPOT earns a higher WallStSmart Score of 60/100 (C+).
EA
Hold41
out of 100
Grade: D
SPOT
Buy60
out of 100
Grade: C+
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
-47.4%
Fair Value
$330.58
Current Price
$443.57
$112.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.8B in free cash flow
Every $100 of equity generates 32 in profit
Earnings expanding 213.9% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
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
Trading at 9.3x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : EA
The strongest argument for EA centers on Market Cap, Free Cash Flow.
Bull Case : SPOT
The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap.
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 : SPOT
The primary concerns for SPOT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.
Key Dynamics to Monitor
SPOT carries more volatility with a beta of 1.70 — expect wider price swings.
SPOT is growing revenue faster at 6.8% — sustainability is the question.
EA generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor ELECTRONIC GAMING & MULTIMEDIA industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SPOT scores higher overall (60/100 vs 41/100). 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 →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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