Critical Review: Electronic Arts (NASDAQ:EA) versus Simplicity Esports and Gaming (OTCMKTS:WINR)

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

Insider and Institutional Ownership

90.2% of Electronic Arts shares are owned by institutional investors. 15.4% of Simplicity Esports and Gaming shares are owned by insiders. Comparatively, 0.2% of Electronic Arts shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Simplicity Esports and Gaming and Electronic Arts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simplicity Esports and Gaming	0	0	0	0	0.00
Electronic Arts	1	17	2	0	2.05

Electronic Arts has a consensus price target of $196.64, indicating a potential downside of 3.14%. Given Simplicity Esports and Gaming’s higher possible upside, equities research analysts plainly believe Simplicity Esports and Gaming is more favorable than Electronic Arts.

Valuation and Earnings

This table compares Simplicity Esports and Gaming and Electronic Arts”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simplicity Esports and Gaming	N/A	N/A	N/A	N/A	N/A
Electronic Arts	$7.53 billion	6.76	$887.00 million	$3.49	58.17

Electronic Arts has higher revenue and earnings than Simplicity Esports and Gaming.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Simplicity Esports and Gaming	N/A	N/A	N/A
Electronic Arts	11.78%	23.41%	11.71%

Summary

Electronic Arts beats Simplicity Esports and Gaming on 7 of the 9 factors compared between the two stocks.

About Simplicity Esports and Gaming

Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.

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.