Electronic Arts (NASDAQ:EA) versus Sharplink Gaming (NASDAQ:SBET) Head to Head Survey

Sharplink Gaming (NASDAQ:SBET) and Electronic Arts (NASDAQ:EA) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Earnings & Valuation

This table compares Sharplink Gaming and Electronic Arts”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sharplink Gaming	$3.14 million	665.67	$10.10 million	($5.01)	-2.17
Electronic Arts	$7.29 billion	6.88	$1.12 billion	$3.42	58.79

Electronic Arts has higher revenue and earnings than Sharplink Gaming. Sharplink Gaming is trading at a lower price-to-earnings ratio than Electronic Arts, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

13.8% of Sharplink Gaming shares are owned by institutional investors. Comparatively, 90.2% of Electronic Arts shares are owned by institutional investors. 3.4% of Sharplink Gaming shares are owned by insiders. Comparatively, 0.2% of Electronic Arts shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sharplink Gaming	-3,377.39%	-15.93%	-15.81%
Electronic Arts	12.14%	15.30%	8.02%

Analyst Ratings

This is a breakdown of recent ratings for Sharplink Gaming and Electronic Arts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sharplink Gaming	1	1	4	0	2.50
Electronic Arts	1	25	4	2	2.22

Sharplink Gaming presently has a consensus price target of $40.80, suggesting a potential upside of 274.66%. Electronic Arts has a consensus price target of $181.64, suggesting a potential downside of 9.66%. Given Sharplink Gaming’s stronger consensus rating and higher possible upside, research analysts plainly believe Sharplink Gaming is more favorable than Electronic Arts.

Volatility & Risk

Sharplink Gaming has a beta of 9.98, indicating that its stock price is 898% more volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Summary

Electronic Arts beats Sharplink Gaming on 9 of the 14 factors compared between the two stocks.

About Sharplink Gaming

SharpLink Gaming, Inc. operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company's sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers. It also provides iGaming and affiliate marketing network, which focuses on delivering quality traffic and player acquisitions, and retention and conversions to global iGaming operator partners worldwide; and development, hosting, operations, maintenance, and service of free-to-play games and contests. In addition, the company owns and operates various real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States, where fantasy sports play is legal and in which SportsHub has elected to operate based on the financial viability. SharpLink Gaming, Inc. was founded in 2019 and is headquartered in Minneapolis, Minnesota.

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.