Electronic Arts (NASDAQ:EA – Get Free Report) and Simplicity Esports and Gaming (OTCMKTS:WINR – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.
Earnings & Valuation
This table compares Electronic Arts and Simplicity Esports and Gaming”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Electronic Arts | $7.53 billion | 6.76 | $887.00 million | $3.49 | 58.17 |
| Simplicity Esports and Gaming | N/A | N/A | N/A | N/A | N/A |
Insider and Institutional Ownership
90.2% of Electronic Arts shares are held by institutional investors. 0.2% of Electronic Arts shares are held by insiders. Comparatively, 15.4% of Simplicity Esports and Gaming shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Electronic Arts and Simplicity Esports and Gaming’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Electronic Arts | 11.78% | 23.41% | 11.71% |
| Simplicity Esports and Gaming | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Electronic Arts and Simplicity Esports and Gaming, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Electronic Arts | 1 | 17 | 2 | 0 | 2.05 |
| Simplicity Esports and Gaming | 0 | 0 | 0 | 0 | 0.00 |
Electronic Arts currently has a consensus target price of $196.64, indicating a potential downside of 3.14%. Given Simplicity Esports and Gaming’s higher probable upside, analysts plainly believe Simplicity Esports and Gaming is more favorable than Electronic Arts.
Summary
Electronic Arts beats Simplicity Esports and Gaming on 7 of the 9 factors compared between the two stocks.
About Electronic Arts
Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands. The company licenses its games to third parties to distribute and host its games. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.
About Simplicity Esports and Gaming
Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.
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