YuMe (NYSE: YUME) and Electronic Arts (NASDAQ:EA) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Risk and Volatility

YuMe has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for YuMe and Electronic Arts, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YuMe 0 1 0 0 2.00
Electronic Arts 0 3 22 0 2.88

Electronic Arts has a consensus price target of $123.51, suggesting a potential upside of 17.08%. Given Electronic Arts’ stronger consensus rating and higher possible upside, analysts clearly believe Electronic Arts is more favorable than YuMe.

Valuation and Earnings

This table compares YuMe and Electronic Arts’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
YuMe $160.41 million 0.79 -$7.72 million $0.24 15.17
Electronic Arts $4.85 billion 6.70 $967.00 million $3.80 27.76

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

Net Margins Return on Equity Return on Assets
YuMe 5.25% 10.01% 6.37%
Electronic Arts 23.35% 28.92% 15.51%

Dividends

YuMe pays an annual dividend of $0.12 per share and has a dividend yield of 3.3%. Electronic Arts does not pay a dividend. YuMe pays out 50.0% of its earnings in the form of a dividend.

Institutional and Insider Ownership

47.7% of YuMe shares are owned by institutional investors. Comparatively, 93.8% of Electronic Arts shares are owned by institutional investors. 29.3% of YuMe shares are owned by company insiders. Comparatively, 2.6% of Electronic Arts shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Electronic Arts beats YuMe on 13 of the 16 factors compared between the two stocks.

YuMe Company Profile

YuMe, Inc. (YuMe) is an independent provider of multi-screen video advertising technology, connecting brand advertisers, digital media property owners and consumers of video content across a range of Internet-connected devices. The Company operating segments include Domestic and International. The Company offers advertising customers end-to-end marketing solutions by combining data-driven technologies with deep insight into audience behavior. The Company also offers demand-side platform (DSP), called YuMe for Advertisers, to find relevant audiences and deliver targeted advertising, and a supply-side platform (SSP), called YuMe for Publishers (YFP 5.0), which helps aggregate audiences, define audience characteristics and offer monetization opportunities for digital media property owners. Its technologies serve the specific needs of brand advertisers and enable them to find and target brand-receptive audiences across a range of Internet connected devices and digital media properties.

Electronic Arts Company Profile

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.

Receive News & Ratings for YuMe Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for YuMe Inc and related companies with MarketBeat.com's FREE daily email newsletter.