CYREN (NASDAQ: CYRN) and Electronic Arts (NASDAQ:EA) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares CYREN and Electronic Arts’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CYREN $30.98 million 3.94 -$6.21 million ($0.30) -8.17
Electronic Arts $4.85 billion 6.56 $967.00 million $3.80 27.15

Electronic Arts has higher revenue and earnings than CYREN. CYREN 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

CYREN has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Insider and Institutional Ownership

22.6% of CYREN shares are held by institutional investors. Comparatively, 93.8% of Electronic Arts shares are held by institutional investors. 2.6% of Electronic Arts shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares CYREN and Electronic Arts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CYREN -34.47% -38.38% -22.19%
Electronic Arts 23.35% 28.92% 15.51%

Analyst Recommendations

This is a summary of recent ratings and price targets for CYREN and Electronic Arts, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CYREN 0 0 0 0 N/A
Electronic Arts 0 3 22 0 2.88

Electronic Arts has a consensus price target of $123.51, indicating a potential upside of 19.71%. Given Electronic Arts’ higher possible upside, analysts plainly believe Electronic Arts is more favorable than CYREN.

Summary

Electronic Arts beats CYREN on 11 of the 12 factors compared between the two stocks.

CYREN Company Profile

CYREN Ltd. (CYREN) is engaged in developing and marketing information security solutions for protecting Web, e-mail and mobile transactions. The Company is a Security-as-a-Service provider of integrated cloud-based security technology solutions that mitigate cyber threats, malware attacks, information leaks, legal liability and productivity loss through the application of cyber intelligence. It delivers security services to a range of customers and original equipment manufacturer, and service provider distribution partners, including network and security vendors offering content security gateways, unified threat management solutions and antivirus solutions, and to service providers, such as Software-as-a-Service vendors, Web hosting providers and Internet service providers. Its technologies include CYREN GlobalView Cloud and Recurrent Pattern Detection. Its offerings include CYREN WebSecurity (CWS), CYREN EmailSecurity, Cyber Intelligence Suite and Embedded Solutions.

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.

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