Electronic Arts (NASDAQ:EA) vs. FlexiInternational Software (OTCMKTS:FLXI) Critical Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Electronic Arts	14.09%	20.58%	11.48%
FlexiInternational Software	N/A	N/A	N/A

Risk & Volatility

Electronic Arts has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, FlexiInternational Software has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.

Institutional & Insider Ownership

90.2% of Electronic Arts shares are owned by institutional investors. 0.2% of Electronic Arts shares are owned by company insiders. Comparatively, 13.1% of FlexiInternational Software shares are owned 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.

Valuation & Earnings

This table compares Electronic Arts and FlexiInternational Software’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electronic Arts	$7.43 billion	4.57	$802.00 million	$3.97	32.00
FlexiInternational Software	N/A	N/A	N/A	N/A	N/A

Electronic Arts has higher revenue and earnings than FlexiInternational Software.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Electronic Arts and FlexiInternational Software, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electronic Arts	0	8	10	0	2.56
FlexiInternational Software	0	0	0	0	N/A

Electronic Arts presently has a consensus price target of $147.00, indicating a potential upside of 15.70%. Given Electronic Arts’ higher possible upside, research analysts clearly believe Electronic Arts is more favorable than FlexiInternational Software.

Summary

Electronic Arts beats FlexiInternational Software on 8 of the 9 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 FlexiInternational Software

FlexiInternational Software Inc. develops, markets, and supports back office accounting software solutions for companies in banking and credit union, insurance, financial services, and other service industries worldwide. The company offers offers FlexiFinancials suite that consists of FlexiLedger, a core repository of financial transactions; FlexiPayables, an accounts payable module; FlexiPurchasing to track and streamline the purchasing processes; FlexiAssets, a fixed assets module; FlexiProjects that manages, tracks, and analyzes project costs, budgets, encumbrances, and status; FlexiFDW, an event-driven data repository; and FlexiReceivables for companies to manage and track their receivables. It also provides FlexiTools applications to customize FlexiFinancials, such as FlexiDesigner to customize the FlexiFinancials Suite GUI using an interactive visual design editor; and FlexiDB that allows the customization of the Flexi database structures. In addition, the company offers FlexiInfo Suite that consist of FlexiWorkflow, an application that is integrated with various FlexiFinancial modules; FlexiImaging that provides integration with various third party imaging solutions, including Microsoft SharePoint; and RenovoFYI, a Web based financial report writer. Further, it provides FlexiIntegration suite that consists of FlexiAPIs that provide real-time, synchronous access to functional components within the FlexiFinancials Suite of applications; FlexiNetExchange to provide a seamless integration with Jack Henry's Silverlake core banking solution, Synergy Workflow, and Synergy Imaging; and FlexiImport/Export Wizard that allow users to import and export data. Furthermore, the company offers consulting, training and education, and support services. It has strategic partnerships with Acturis; and Jack Henry & Associates. The company was founded in 1991 and is based in Shelton, Connecticut with additional locations in Naples, Florida; and Surrey, United Kingdom.