Head to Head Analysis: Autodesk (ADSK) and Electronic Arts (EA)
Electronic Arts (NASDAQ: EA) and Autodesk (NASDAQ:ADSK) are both large-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitabiliy, dividends, valuation, analyst recommendations and earnings.
This is a breakdown of recent ratings and price targets for Electronic Arts and Autodesk, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Electronic Arts presently has a consensus price target of $106.65, suggesting a potential downside of 2.15%. Autodesk has a consensus price target of $105.35, suggesting a potential downside of 3.11%. Given Electronic Arts’ stronger consensus rating and higher possible upside, research analysts plainly believe Electronic Arts is more favorable than Autodesk.
This table compares Electronic Arts and Autodesk’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Electronic Arts and Autodesk’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Electronic Arts||$4.85 billion||6.97||$1.41 billion||$3.08||35.39|
|Autodesk||$2.00 billion||11.98||-$294.20 million||($2.44)||-44.57|
Electronic Arts has higher revenue and earnings than Autodesk. Autodesk is trading at a lower price-to-earnings ratio than Electronic Arts, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Electronic Arts has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Autodesk has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.
Institutional & Insider Ownership
98.1% of Electronic Arts shares are held by institutional investors. Comparatively, 97.4% of Autodesk shares are held by institutional investors. 2.6% of Electronic Arts shares are held by insiders. Comparatively, 6.1% of Autodesk shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Electronic Arts beats Autodesk on 10 of the 13 factors compared between the two stocks.
Electronic Arts Company Profile
Electronic Arts Inc. develops, markets, publishes and distributes games, content and services that can be played by consumers on a range of platforms, which include consoles, personal computers (PCs), mobile phones and tablets. The Company’s games and services are based on a portfolio of intellectual property that includes established brands, such as FIFA, Madden NFL, Star Wars, Battlefield, the Sims and Need for Speed. The Company markets and sells its games and services through retail channels and through digital distribution channels. The Company’s PC games and additional content can be downloaded directly through its Origin online platform, as well as through third-party online download stores. Its mobile, tablet and PC free-to-download games and additional content are available through third-party application storefronts, such as the Apple Application Store and Google Play.
Autodesk Company Profile
Autodesk, Inc. is a design software and services company, offering customers productive business solutions through technology products and services. The Company’s segments include Architecture, Engineering and Construction (AEC), Platform Solutions and Emerging Business (PSEB), Manufacturing (MFG), and Media and Entertainment (M&E). The Company serves customers in the architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries. The Company’s product development and manufacturing software provides manufacturers in automotive, transportation, industrial machinery, consumer products and building products with digital engineering solutions. The Company’s product offerings include, AutoCAD, AutoCAD LT, Industry Collections, 3ds Max, Maya, Revit, Inventor, AutoCAD Civil three dimensional (3D), CAM Solutions, Fusion 360, BIM 360 and Shotgun.
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