Electronic Arts vs Ubisoft Entertainment Which Is More Attractive?

Electronic Arts (EA) and Ubisoft Entertainment are two leading players in the video game industry, each with a strong presence in the market. Both companies have a track record of producing popular and successful franchises, such as EA's FIFA and Ubisoft's Assassin's Creed. Investors interested in the gaming sector may find these two stocks appealing, but their financial performance, competitive positioning, and growth prospects vary. This comparison will delve into the key differences between EA and Ubisoft stocks to help investors make informed decisions.

Electronic Arts or Ubisoft Entertainment?

When comparing Electronic Arts and Ubisoft Entertainment, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Electronic Arts and Ubisoft Entertainment.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Electronic Arts has a dividend yield of 0.48%, while Ubisoft Entertainment has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Electronic Arts reports a 5-year dividend growth of 0.00% year and a payout ratio of 19.41%. On the other hand, Ubisoft Entertainment reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Electronic Arts P/E ratio at 39.78 and Ubisoft Entertainment's P/E ratio at 2.57. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Electronic Arts P/B ratio is 5.62 while Ubisoft Entertainment's P/B ratio is 0.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Electronic Arts has seen a 5-year revenue growth of 0.60%, while Ubisoft Entertainment's is 4.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Electronic Arts's ROE at 14.01% and Ubisoft Entertainment's ROE at 8.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $156.68 for Electronic Arts and $2.50 for Ubisoft Entertainment. Over the past year, Electronic Arts's prices ranged from $124.92 to $168.50, with a yearly change of 34.89%. Ubisoft Entertainment's prices fluctuated between $2.03 and $5.31, with a yearly change of 161.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.