Electronic Arts (NASDAQ: EA) and Symantec Corporation (NASDAQ:SYMC) are both large-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current ratings for Electronic Arts and Symantec Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electronic Arts 0 3 19 0 2.86
Symantec Corporation 1 12 13 0 2.46

Electronic Arts currently has a consensus price target of $114.97, suggesting a potential downside of 1.68%. Symantec Corporation has a consensus price target of $30.86, suggesting a potential upside of 4.73%. Given Symantec Corporation’s higher probable upside, analysts plainly believe Symantec Corporation is more favorable than Electronic Arts.

Dividends

Symantec Corporation pays an annual dividend of $0.30 per share and has a dividend yield of 1.0%. Electronic Arts does not pay a dividend. Symantec Corporation pays out -49.2% of its earnings in the form of a dividend.

Volatility & Risk

Electronic Arts has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Symantec Corporation has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Profitability

This table compares Electronic Arts and Symantec Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Electronic Arts 23.31% 29.77% 15.74%
Symantec Corporation -8.68% 10.73% 2.33%

Insider & Institutional Ownership

93.9% of Electronic Arts shares are owned by institutional investors. Comparatively, 93.4% of Symantec Corporation shares are owned by institutional investors. 2.6% of Electronic Arts shares are owned by company insiders. Comparatively, 1.3% of Symantec Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Electronic Arts and Symantec Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Electronic Arts $5.02 billion 7.19 $1.58 billion $3.74 31.26
Symantec Corporation $4.31 billion 4.19 $714.00 million ($0.61) -48.31

Electronic Arts has higher revenue and earnings than Symantec Corporation. Symantec Corporation is trading at a lower price-to-earnings ratio than Electronic Arts, indicating that it is currently the more affordable of the two stocks.

Summary

Electronic Arts beats Symantec Corporation 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 that can be played by consumers on a range of platforms, which include consoles, personal computers (PCs), mobile phones and tablets. The Company’s games and services are based on a portfolio of intellectual property that includes established brands, such as FIFA, Madden NFL, Star Wars, Battlefield, the Sims and Need for Speed. The Company markets and sells its games and services through retail channels and through digital distribution channels. The Company’s PC games and additional content can be downloaded directly through its Origin online platform, as well as through third-party online download stores. Its mobile, tablet and PC free-to-download games and additional content are available through third-party application storefronts, such as the Apple Application Store and Google Play.

About Symantec Corporation

Symantec Corporation is a United States-based cyber security company. The Company offers products under categories, such as threat protection, information protection, cyber security services and Website security. Under threat protection, it offers Advanced Threat Protection, Endpoint Protection, Endpoint Protection Cloud, IT Management Suite, Email Security.Cloud, Data Center Security and Cloud Workload Protection products. Under the information protection category, it offers Data Loss Prevention, Encryption, Managed PKI, Service, VIP Access Manager, and Data Loss Prevention and CloudSOC products. The Company also offers consulting services, customer success services, cyber security services and education services. Its cyber security services include DeepSight Intelligence software, which provides an analysis of attacks. The Company offers the Blue Coat Security Platform, which provides Web security solutions for global enterprises and governments.

Receive News & Stock Ratings for Electronic Arts Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Electronic Arts Inc. and related stocks with our FREE daily email newsletter.