Analyzing Electronic Arts (NASDAQ:EA) and SJM (OTCMKTS:SJMHF)

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

Valuation & Earnings

This table compares Electronic Arts and SJM”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	6.74	$1.12 billion	$2.66	75.61
SJM	$3.69 billion	0.50	$410,000.00	N/A	N/A

Electronic Arts has higher revenue and earnings than SJM.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Electronic Arts and SJM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electronic Arts	1	19	3	0	2.09
SJM	0	2	0	0	2.00

Electronic Arts presently has a consensus price target of $188.30, suggesting a potential downside of 6.38%. Given Electronic Arts’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Electronic Arts is more favorable than SJM.

Institutional & Insider Ownership

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

Risk & Volatility

Electronic Arts has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, SJM has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Electronic Arts	9.31%	23.53%	11.78%
SJM	N/A	N/A	N/A

Summary

Electronic Arts beats SJM on 12 of the 12 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 SJM

SJM Holdings Limited, an investment holding company, owns, develops, and operates casinos and related facilities in Macau. The company operates through two segments, Gaming Operations; and Hotel, Catering, Retail and Leasing Operations. The Gaming Operations segment engages in rolling, non-rolling, and electronic game gaming operations. The Hotel, Catering, Retail, and Leasing Operations segment operates and manages a hotel; and offers catering, leasing, retail, and related activities. It also provides marketing and promotion, property development preparation, casino operations management, dredging, customer, retail, human resources and project management, shopping mall management, food and beverage, treasury, management, and hospitality services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.