Electronic Arts Inc (EA)vsTake-Two Interactive Software Inc (TTWO)
EA
Electronic Arts Inc
$205.21
-0.20%
COMMUNICATION SERVICES · Cap: $51.47B
TTWO
Take-Two Interactive Software Inc
$254.99
+1.87%
COMMUNICATION SERVICES · Cap: $43.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Electronic Arts Inc generates 13% more annual revenue ($7.53B vs $6.66B). EA leads profitability with a 11.8% profit margin vs -4.5%. EA appears more attractively valued with a PEG of 1.27. EA earns a higher WallStSmart Score of 65/100 (C+).
EA
Buy65
out of 100
Grade: C+
TTWO
Avoid29
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-88.7%
Fair Value
$107.18
Current Price
$205.21
$98.03 premium
Intrinsic value data unavailable for TTWO.
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%
No standout strengths identified
Areas to Watch
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 13.5x book value
Operating margin of 2.3%
Expensive relative to growth rate
ROE of -8.5% — below average capital efficiency
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 1.27 suggests the stock is reasonably priced for its growth.
Bull Case : TTWO
TTWO has a balanced fundamental profile.
Bear Case : EA
The primary concerns for EA are Piotroski F-Score, P/E Ratio. A P/E of 58.5x leaves little room for execution misses.
Bear Case : TTWO
The primary concerns for TTWO are Price/Book, Operating Margin, PEG Ratio.
Key Dynamics to Monitor
EA profiles as a value stock while TTWO is a turnaround play — different risk/reward profiles.
TTWO carries more volatility with a beta of 0.98 — expect wider price swings.
EA is growing revenue faster at 11.9% — sustainability is the question.
EA generates stronger free cash flow (519M), providing more financial flexibility.
Bottom Line
EA scores higher overall (65/100 vs 29/100) and 11.9% revenue growth. Both earn "Buy" and "Avoid" 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 →Take-Two Interactive Software Inc
COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA
Take-Two Interactive Software, Inc. is an American video game holding company based in New York City. The company owns two major publishing labels, Rockstar Games and 2K, which operate internal game development studios.
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