GREE (OTCMKTS:GREZF) and Electronic Arts (NASDAQ:EA) Head-To-Head Review

Electronic Arts (NASDAQ:EA) and GREE (OTCMKTS:GREZF) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Institutional & Insider Ownership

90.2% of Electronic Arts 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, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Electronic Arts and GREE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electronic Arts	1	25	4	2	2.22
GREE	0	0	0	0	0.00

Electronic Arts presently has a consensus price target of $179.38, indicating a potential downside of 10.44%. Given Electronic Arts’ stronger consensus rating and higher probable upside, analysts clearly believe Electronic Arts is more favorable than GREE.

Volatility & Risk

Electronic Arts has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, GREE has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500.

Valuation and Earnings

This table compares Electronic Arts and GREE”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electronic Arts	$7.46 billion	6.72	$1.12 billion	$3.99	50.20
GREE	N/A	N/A	N/A	N/A	N/A

Electronic Arts has higher revenue and earnings than GREE.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Electronic Arts	13.94%	18.43%	9.93%
GREE	N/A	N/A	N/A

Summary

Electronic Arts beats GREE on 11 of the 11 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 GREE

GREE, Inc. operates Internet entertainment, investment, and incubation business in Japan and internationally. It develops and operates various smartphone games under the GREE, WFS, Pokelabo, and GREE Entertainment brands; and engages with anime production committees to develop original contents domestically and internationally. The company also offers REALITY, a metaverse for smartphone for individuals to turn themselves into digital avatar and stream various contents, and VTuber business that allows streamers to host live digital performances, play games, and chat services; and REALITY XR cloud, a cloud solution platform that enables corporate customers to build their own metaverse using 3DCG and XR technologies, as well as develop and publish blockchain games. In addition, it provides Marketing DX a service designed to accompany the evolution of client companies and business growth; Operation DX that manages customer relationships, quality control, and risks associated with business development; and DDM, an analytics platform to restructures disorganized internal data by incorporating real-time visualization. Further, the company offers aumo that provides travel and lifestyle information content including latest information on restaurants, shopping, and travel, as well as user reviews on various stores and other facilities; and support for creation of sales promotion pages, access analysis, and post and dissemination of store and facility information. Additionally, it provides jobda for job-related information; LIMIA, an on-;one magazines that features home and living lifestyle content; MINE, an on-line video magazine that features women's fashion, beauty and lifestyle content; and ARINE, a on-line magazine for young women. The company also offers DADAN to deliver the entertainment of manga; STUDIO DADAN to plan and produce manga content; and invests in internet and IT fields. GREE, Inc. was incorporated in 2004 and is headquartered in Tokyo, Japan.