Critical Contrast: Century Casinos (NASDAQ:CNTY) versus Electronic Arts (NASDAQ:EA)

Electronic Arts (NASDAQ:EA) and Century Casinos (NASDAQ:CNTY) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Volatility & Risk

Electronic Arts has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Century Casinos has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500.

Earnings and Valuation

This table compares Electronic Arts and Century Casinos”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electronic Arts	$7.29 billion	7.03	$1.12 billion	$3.42	59.92
Century Casinos	$575.92 million	0.07	-$128.17 million	($3.53)	-0.41

Electronic Arts has higher revenue and earnings than Century Casinos. Century Casinos 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 and price targets for Electronic Arts and Century Casinos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electronic Arts	1	26	4	0	2.10
Century Casinos	1	0	4	0	2.60

Electronic Arts currently has a consensus price target of $181.21, suggesting a potential downside of 11.58%. Century Casinos has a consensus price target of $3.67, suggesting a potential upside of 152.87%. Given Century Casinos’ stronger consensus rating and higher possible upside, analysts plainly believe Century Casinos is more favorable than Electronic Arts.

Profitability

This table compares Electronic Arts and Century Casinos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Electronic Arts	12.14%	15.30%	8.02%
Century Casinos	-18.92%	-165.48%	-5.44%

Insider & Institutional Ownership

90.2% of Electronic Arts shares are owned by institutional investors. Comparatively, 66.4% of Century Casinos shares are owned by institutional investors. 0.2% of Electronic Arts shares are owned by company insiders. Comparatively, 13.0% of Century Casinos 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.

Summary

Electronic Arts beats Century Casinos on 9 of the 13 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 Century Casinos

Century Casinos, Inc. operates as a casino entertainment company in the United States, Canada, and Poland. It develops and operates gaming establishments, as well as related lodging, restaurant, and horse racing including, off-track betting; and entertainment facilities. The company was founded in 1992 and is based in Colorado Springs, Colorado.