Electronic Arts (NASDAQ:EA – Get Free Report) and Full House Resorts (NASDAQ:FLL – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
Volatility & Risk
Electronic Arts has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Full House Resorts has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.
Insider & Institutional Ownership
90.2% of Electronic Arts shares are held by institutional investors. Comparatively, 37.7% of Full House Resorts shares are held by institutional investors. 0.2% of Electronic Arts shares are held by company insiders. Comparatively, 9.4% of Full House Resorts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Electronic Arts | 12.14% | 15.30% | 8.02% |
| Full House Resorts | -13.75% | -118.79% | -6.48% |
Earnings and Valuation
This table compares Electronic Arts and Full House Resorts”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Electronic Arts | $7.29 billion | 6.88 | $1.12 billion | $3.42 | 58.79 |
| Full House Resorts | $299.92 million | 0.31 | -$40.67 million | ($1.12) | -2.30 |
Electronic Arts has higher revenue and earnings than Full House Resorts. Full House Resorts is trading at a lower price-to-earnings ratio than Electronic Arts, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for Electronic Arts and Full House Resorts, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Electronic Arts | 1 | 26 | 4 | 1 | 2.16 |
| Full House Resorts | 1 | 1 | 3 | 0 | 2.40 |
Electronic Arts currently has a consensus target price of $181.64, indicating a potential downside of 9.65%. Full House Resorts has a consensus target price of $4.50, indicating a potential upside of 74.42%. Given Full House Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Full House Resorts is more favorable than Electronic Arts.
Summary
Electronic Arts beats Full House Resorts on 11 of the 15 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 Full House Resorts
Full House Resorts, Inc. owns, leases, operates, develops, manages, and invests in casinos, and related hospitality and entertainment facilities in the United States. It operates through Midwest & South, West, and Contracted Sports Wagering segments. The company's properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Rising Star Casino Resort in Rising Sun, Indiana; Bronco Billy's Casino and Chamonix Casino Hotel in Cripple Creek, Colorado; Stockman's Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. It also offers online sports wagering services. The company was incorporated in 1987 and is headquartered in Las Vegas, Nevada.
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