GameSquare (NASDAQ:GAME) versus Electronic Arts (NASDAQ:EA) Financial Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GameSquare	-60.09%	-54.32%	-19.19%
Electronic Arts	9.31%	23.53%	11.78%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for GameSquare and Electronic Arts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameSquare	2	0	0	0	1.00
Electronic Arts	1	19	3	0	2.09

Electronic Arts has a consensus price target of $188.30, indicating a potential downside of 7.09%. Given Electronic Arts’ stronger consensus rating and higher probable upside, analysts plainly believe Electronic Arts is more favorable than GameSquare.

Valuation and Earnings

This table compares GameSquare and Electronic Arts”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GameSquare	$45.00 million	1.27	-$40.10 million	($0.55)	-1.09
Electronic Arts	$7.46 billion	6.80	$1.12 billion	$2.66	76.19

Electronic Arts has higher revenue and earnings than GameSquare. GameSquare 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 & Volatility

GameSquare has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Institutional & Insider Ownership

64.3% of GameSquare shares are held by institutional investors. Comparatively, 90.2% of Electronic Arts shares are held by institutional investors. 5.1% of GameSquare shares are held by insiders. Comparatively, 0.2% of Electronic Arts shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Electronic Arts beats GameSquare on 12 of the 14 factors compared between the two stocks.

About GameSquare

GameSquare Holdings, Inc. operates as a vertically integrated digital media, entertainment, and technology company. Its platform to connect with gaming and youth culture audiences. The company’s end-to-end platform includes Code Red Esports Ltd., an esports talent agency; GCN, a digital media company focusing on the gaming and esports audience; Zoned, a gaming and lifestyle marketing agency; Complexity Gaming, a esports organization operating; Fourth Frame Studios, a creative production studio; and Mission Supply, a merchandise and consumer products business; Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform. The company also engages in providing marketing and creative services, offering leading data and analytics solutions. The company was formerly known as Engine Gaming & Media, Inc. GameSquare Holdings, Inc. is headquartered in Frisco, Texas.

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.