Electronic Arts (NASDAQ:EA) and Rush Street Interactive (NYSE:RSI) Head-To-Head Analysis

Rush Street Interactive (NYSE:RSI) and Electronic Arts (NASDAQ:EA) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Valuation & Earnings

This table compares Rush Street Interactive and Electronic Arts”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rush Street Interactive	$1.13 billion	5.77	$33.31 million	$0.29	97.01
Electronic Arts	$7.53 billion	7.03	$887.00 million	$3.49	60.15

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

Risk and Volatility

Rush Street Interactive has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Rush Street Interactive and Electronic Arts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rush Street Interactive	0	3	9	1	2.85
Electronic Arts	2	14	2	0	2.00

Rush Street Interactive presently has a consensus target price of $35.22, indicating a potential upside of 25.20%. Electronic Arts has a consensus target price of $201.42, indicating a potential downside of 4.05%. Given Rush Street Interactive’s stronger consensus rating and higher probable upside, equities analysts plainly believe Rush Street Interactive is more favorable than Electronic Arts.

Profitability

This table compares Rush Street Interactive and Electronic Arts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rush Street Interactive	2.33%	18.88%	8.57%
Electronic Arts	11.78%	23.41%	11.71%

Institutional & Insider Ownership

24.8% of Rush Street Interactive shares are held by institutional investors. Comparatively, 90.2% of Electronic Arts shares are held by institutional investors. 52.9% of Rush Street Interactive shares are held by insiders. Comparatively, 0.2% of Electronic Arts shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Electronic Arts beats Rush Street Interactive on 8 of the 15 factors compared between the two stocks.

About Rush Street Interactive

Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.

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.