Electronic Arts (NASDAQ:EA) and Bentley Systems (NASDAQ:BSY) are both large-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
Institutional and Insider Ownership
88.0% of Electronic Arts shares are owned by institutional investors. Comparatively, 4.9% of Bentley Systems shares are owned by institutional investors. 0.9% of Electronic Arts shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Dividends
Electronic Arts pays an annual dividend of $0.68 per share and has a dividend yield of 0.5%. Bentley Systems pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Electronic Arts pays out 14.3% of its earnings in the form of a dividend. Electronic Arts has increased its dividend for 1 consecutive years. Electronic Arts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Electronic Arts and Bentley Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Electronic Arts | 23.51% | 17.85% | 12.11% |
Bentley Systems | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Electronic Arts and Bentley Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Electronic Arts | 0 | 12 | 14 | 0 | 2.54 |
Bentley Systems | 0 | 2 | 5 | 0 | 2.71 |
Electronic Arts presently has a consensus price target of $153.3448, indicating a potential upside of 9.23%. Bentley Systems has a consensus price target of $43.7143, indicating a potential downside of 14.52%. Given Electronic Arts' higher possible upside, equities analysts plainly believe Electronic Arts is more favorable than Bentley Systems.
Valuation & Earnings
This table compares Electronic Arts and Bentley Systems' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Electronic Arts | $5.54 billion | 7.30 | $3.04 billion | $4.76 | 29.52 |
Bentley Systems | $736.65 million | 18.17 | $103.09 million | N/A | N/A |
Electronic Arts has higher revenue and earnings than Bentley Systems.
Summary
Electronic Arts beats Bentley Systems on 11 of the 14 factors compared between the two stocks.