Electronic Arts (EA) Competitors

Electronic Arts (NASDAQ:EA) and Shopify (NYSE:SHOP) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, community ranking, analyst recommendations, risk and media sentiment.

Which has more volatility and risk, EA or SHOP?

Electronic Arts has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Shopify has a beta of 2.66, meaning that its stock price is 166% more volatile than the S&P 500.

Do analysts prefer EA or SHOP?

Electronic Arts currently has a consensus price target of $161.29, indicating a potential upside of 6.39%. Shopify has a consensus price target of $115.37, indicating a potential upside of 8.99%. Given Shopify's stronger consensus rating and higher probable upside, analysts clearly believe Shopify is more favorable than Electronic Arts.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electronic Arts	0 Sell rating(s)	15 Hold rating(s)	10 Buy rating(s)	1 Strong Buy rating(s)	2.46
Shopify	1 Sell rating(s)	14 Hold rating(s)	26 Buy rating(s)	2 Strong Buy rating(s)	2.67

Which has stronger valuation & earnings, EA or SHOP?

Shopify has higher revenue and earnings than Electronic Arts. Electronic Arts is trading at a lower price-to-earnings ratio than Shopify, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electronic Arts	$7.46B	5.09	$1.27B	$4.24	35.76
Shopify	$9.38B	14.61	$2.02B	$1.23	86.06

Does the media refer more to EA or SHOP?

In the previous week, Shopify had 18 more articles in the media than Electronic Arts. MarketBeat recorded 49 mentions for Shopify and 31 mentions for Electronic Arts. Electronic Arts' average media sentiment score of 1.09 beat Shopify's score of 0.97 indicating that Electronic Arts is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Electronic Arts	21 Very Positive mention(s)	1 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Shopify	32 Very Positive mention(s)	4 Positive mention(s)	10 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Does the MarketBeat Community believe in EA or SHOP?

Electronic Arts received 144 more outperform votes than Shopify when rated by MarketBeat users. Likewise, 73.93% of users gave Electronic Arts an outperform vote while only 66.30% of users gave Shopify an outperform vote.

Company	Underperform	Outperform
Electronic Arts	Outperform Votes 1574 73.93%	Underperform Votes 555 26.07%
Shopify	Outperform Votes 1430 66.30%	Underperform Votes 727 33.70%

Is EA or SHOP more profitable?

Shopify has a net margin of 22.74% compared to Electronic Arts' net margin of 14.28%. Electronic Arts' return on equity of 17.80% beat Shopify's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Electronic Arts	14.28%	17.80%	10.04%
Shopify	22.74%	12.00%	9.79%

Do insiders and institutionals have more ownership in EA or SHOP?

90.2% of Electronic Arts shares are owned by institutional investors. Comparatively, 69.3% of Shopify shares are owned by institutional investors. 0.2% of Electronic Arts shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Shopify beats Electronic Arts on 11 of the 19 factors compared between the two stocks.