Head to Head Review: Electronic Arts (NASDAQ:EA) & DouYu International (NASDAQ:DOYU)

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

Institutional and Insider Ownership

90.2% of Electronic Arts shares are held by institutional investors. Comparatively, 17.9% of DouYu International shares are held by institutional investors. 0.2% of Electronic Arts shares are held by company insiders. Comparatively, 17.3% of DouYu International 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.

Volatility & Risk

Electronic Arts has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Valuation and Earnings

This table compares Electronic Arts and DouYu International”s top-line 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	6.82	$1.12 billion	$2.66	76.45
DouYu International	$546.09 million	0.29	-$4.16 million	($0.13)	-39.69

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.

Profitability

This table compares Electronic Arts and DouYu International’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%
DouYu International	-0.73%	2.04%	1.29%

Analyst Ratings

This is a breakdown of current recommendations for Electronic Arts and DouYu International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electronic Arts	1	19	3	0	2.09
DouYu International	1	1	0	0	1.50

Electronic Arts presently has a consensus target price of $188.30, indicating a potential downside of 7.41%. DouYu International has a consensus target price of $7.00, indicating a potential upside of 35.66%. Given DouYu International’s higher probable upside, analysts plainly believe DouYu International is more favorable than Electronic Arts.

Summary

Electronic Arts beats DouYu International on 11 of the 14 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 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.