Critical Survey: Electronic Arts (NASDAQ:EA) & Gamehaus (NASDAQ:GMHS)

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

Institutional & Insider Ownership

63.7% of Gamehaus shares are owned by institutional investors. Comparatively, 90.2% of Electronic Arts shares are owned by institutional investors. 27.7% of Gamehaus shares are owned by company insiders. Comparatively, 0.2% of Electronic Arts shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Gamehaus and Electronic Arts”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gamehaus	$118.05 million	0.47	$3.96 million	$0.07	14.71
Electronic Arts	$7.46 billion	6.70	$1.12 billion	$2.66	75.14

Electronic Arts has higher revenue and earnings than Gamehaus. Gamehaus 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 Gamehaus and Electronic Arts’ net margins, return on equity and return on assets.

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

Analyst Recommendations

This is a summary of current ratings and price targets for Gamehaus and Electronic Arts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gamehaus	1	0	0	0	1.00
Electronic Arts	1	19	4	0	2.13

Electronic Arts has a consensus price target of $186.95, indicating a potential downside of 6.47%. Given Electronic Arts’ stronger consensus rating and higher probable upside, analysts plainly believe Electronic Arts is more favorable than Gamehaus.

Risk and Volatility

Gamehaus has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Summary

Electronic Arts beats Gamehaus on 13 of the 14 factors compared between the two stocks.

About Gamehaus

Gamehaus Holdings Inc. is a mobile game developer and publisher. Gamehaus Holdings Inc. is headquartered in Beijing, China.

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.