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

Profitability

This table compares Carbon Black and Electronic Arts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carbon Black N/A N/A N/A
Electronic Arts 14.30% 25.31% 13.89%

Insider & Institutional Ownership

24.5% of Carbon Black shares are held by institutional investors. Comparatively, 93.2% of Electronic Arts shares are held by institutional investors. 2.2% of Electronic Arts shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carbon Black $162.01 million 10.16 -$55.82 million N/A N/A
Electronic Arts $5.15 billion 6.80 $1.04 billion $3.44 33.40

Electronic Arts has higher revenue and earnings than Carbon Black.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Carbon Black and Electronic Arts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carbon Black 0 2 5 0 2.71
Electronic Arts 0 4 20 0 2.83

Carbon Black presently has a consensus target price of $29.60, indicating a potential upside of 21.96%. Electronic Arts has a consensus target price of $143.64, indicating a potential upside of 25.00%. Given Electronic Arts’ stronger consensus rating and higher possible upside, analysts plainly believe Electronic Arts is more favorable than Carbon Black.

Summary

Electronic Arts beats Carbon Black on 10 of the 11 factors compared between the two stocks.

Carbon Black Company Profile

Carbon Black, Inc. provides security solutions in the United States and internationally. Its security cloud platform captures, records, and analyzes unfiltered endpoint data. The company's solutions enable customers to predict, prevent, detect, respond to and remediate cyber attacks before they cause a damaging incident or data breach. Its solutions are used to augment or replace legacy antivirus software, prevent malware and fileless attacks, protect against ransomware, hunt down threats, respond to and remediate security incidents, lock down critical systems and applications, lock down critical systems and applications, secure workloads and applications in virtualized and cloud environments, comply with regulatory mandates, and enhance other security products through its unfiltered endpoint data. The company serves enterprises, government agencies, and mid-sized organizations. Carbon Black, Inc. was founded in 2002 and is headquartered in Waltham, Massachusetts.

Electronic Arts Company Profile

Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. The company develops and publishes games and services across various genres, such as sports, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, Mass Effect, Need for Speed, The Sims, and Plants v. Zombies brands; and license games from others, such as FIFA, Madden NFL, and Star Wars. It also provides advertisement services on its online Web pages and games; and licenses its game software to third parties. The company markets and sells its games and services through digital distribution channels, as well as through retail channels, such as mass market retailers, electronics specialty stores, and game software specialty stores. Electronic Arts Inc. was founded in 1982 and is headquartered in Redwood City, California.

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