Comparing ANSYS (NASDAQ:ANSS) and Electronic Arts (EA)
ANSYS (NASDAQ: ANSS) and Electronic Arts (NASDAQ:EA) are both large-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitabiliy, analyst recommendations, dividends, valuation and risk.
This table compares ANSYS and Electronic Arts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings for ANSYS and Electronic Arts, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ANSYS presently has a consensus target price of $105.75, indicating a potential downside of 16.52%. Electronic Arts has a consensus target price of $107.81, indicating a potential downside of 3.93%. Given Electronic Arts’ stronger consensus rating and higher possible upside, analysts plainly believe Electronic Arts is more favorable than ANSYS.
Risk & Volatility
ANSYS has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.
Earnings and Valuation
This table compares ANSYS and Electronic Arts’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ANSYS||$1.02 billion||10.62||$455.21 million||$3.09||40.99|
|Electronic Arts||$4.85 billion||7.17||$1.41 billion||$3.08||36.44|
Electronic Arts has higher revenue and earnings than ANSYS. Electronic Arts is trading at a lower price-to-earnings ratio than ANSYS, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
98.5% of ANSYS shares are owned by institutional investors. Comparatively, 98.3% of Electronic Arts shares are owned by institutional investors. 1.3% of ANSYS shares are owned by company insiders. Comparatively, 2.6% of Electronic Arts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Electronic Arts beats ANSYS on 8 of the 14 factors compared between the two stocks.
ANSYS, Inc. (ANSYS) develops and markets engineering simulation software and services used by engineers, designers, researchers and students across a range of industries and academia, including aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for product development, from design concept to final-stage testing and validation. The Company distributes its ANSYS suite of simulation technologies through a network of independent resellers and distributors, and direct sales offices in various locations. Its product portfolio consists of Simulation Platform: ANSYS Workbench, Structures, Fluids, Electronics, Semiconductors, Multiphysics, AIM, Embedded Software, Systems, Three Dimensional (3-D) Direct Modeling and Academic.
About Electronic Arts
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.
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