DouYu International (NASDAQ:DOYU – Get Free Report) and Electronic Arts (NASDAQ:EA – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.
Analyst Ratings
This is a summary of current recommendations and price targets for DouYu International and Electronic Arts, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DouYu International | 1 | 1 | 0 | 0 | 1.50 |
| Electronic Arts | 1 | 19 | 3 | 0 | 2.09 |
DouYu International currently has a consensus target price of $7.00, suggesting a potential upside of 45.83%. Electronic Arts has a consensus target price of $188.30, suggesting a potential downside of 7.62%. Given DouYu International’s higher possible upside, equities analysts clearly believe DouYu International is more favorable than Electronic Arts.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DouYu International | $546.09 million | 0.27 | -$4.16 million | ($0.13) | -36.92 |
| Electronic Arts | $7.46 billion | 6.83 | $1.12 billion | $2.66 | 76.63 |
Electronic Arts has higher revenue and earnings than DouYu International. DouYu International is trading at a lower price-to-earnings ratio than Electronic Arts, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
DouYu International has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.
Profitability
This table compares DouYu International and Electronic Arts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DouYu International | -0.73% | 2.04% | 1.29% |
| Electronic Arts | 9.31% | 23.53% | 11.78% |
Institutional and Insider Ownership
17.9% of DouYu International shares are held by institutional investors. Comparatively, 90.2% of Electronic Arts shares are held by institutional investors. 17.3% of DouYu International shares are held by company insiders. Comparatively, 0.2% of Electronic Arts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Electronic Arts beats DouYu International on 11 of the 14 factors compared between the two stocks.
About DouYu International
DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.
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.
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