Financial Analysis: Electronic Arts (NASDAQ: EA) vs. Mimecast (NASDAQ: MIME)


Electronic Arts (NASDAQ:EA – Get Rating) and Mimecast (NASDAQ:MIME – Get Rating) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares the net margins, return on equity and return on assets of Electronic Arts and Mimecast.

Net margins Return on equity return on assets
electronic arts 12.43% 17.86% 10.18%
Mimecast 8.21% 11.53% 5.08%

Volatility and risk

Electronic Arts has a beta of 0.84, which suggests its stock price is 16% less volatile than the S&P 500. Comparatively, Mimecast has a beta of 1.35, which suggests its stock price is 35% more volatile than the S&P 500.

Institutional and insider ownership

89.3% of Electronic Arts shares are held by institutional investors. By comparison, 83.6% of Mimecast’s shares are held by institutional investors. 0.4% of Electronic Arts shares are held by insiders. By comparison, 8.0% of Mimecast’s shares are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock will outperform the market over the long term.

Analyst Notes

This is a breakdown of recent ratings and recommendations for Electronic Arts and Mimecast, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
electronic arts 0 4 15 0 2.79
Mimecast 0 12 3 0 2.20

Electronic Arts currently has a consensus price target of $153.91, suggesting a potential upside of 17.96%. Mimecast has a consensus price target of $78.23, suggesting a potential decline of 2.11%. Given Electronic Arts’ higher consensus rating and likely higher upside, analysts clearly believe Electronic Arts is more favorable than Mimecast.

Valuation and benefits

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

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
electronic arts $6.99 billion 5.19 $789.00 million $3.16 41.29
Mimecast $501.40 million 10.67 $29.75 million $0.70 114.17

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

Summary

Electronic Arts beats Mimecast on 10 of the 14 factors compared between the two stocks.

About Electronic Arts

(Get a rating)

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 in various genres, such as sports, racing, first-person shooter, action, role-playing and simulation, mainly under Battlefield, The Sims, Apex Legends, Need for Speed ​​and other licensed games. , 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 agreements. Electronic Arts Inc. was incorporated in 1982 and is based in Redwood City, California.

About Mimecast

(Get a rating)

Mimecast Limited provides cloud security and risk management services for corporate information and email. The company offers the Mimecast Email Security solution, which protects against the delivery of malware, malicious URLs and attachments, spam, viruses, spoofing attacks, phishing attacks and spear phishing, including compromise of business email, identity theft, extortion, fraud and others. attacks, while preventing data leaks and other insider threats, as well as awareness training services. It also provides cyber-resilience extensions, such as Mimecast Enterprise Information Archiving which unifies messaging data to support e-discovery, forensic analysis and compliance initiatives; Mimecast Business Continuity and Sync & Recover, which protects emails and data against the threat of downtime resulting from system failure, natural disasters, planned maintenance, system upgrades and migration; and the Mimecast Web Security service which protects against malicious web activity initiated by user action or malware and blocks access to inappropriate websites based on acceptable use policies. Additionally, the company’s cyber resilience extensions also include Mimecast Secure Messaging, a secure and private channel for sharing sensitive information; Mimecast Health Care Pack, which prevents breaches and protects against data exfiltration transmissions; and Mimecast Large File Send which allows employees to create security and compliance risks when turning to file sharing services. Additionally, it offers Threat Intelligence Dashboard, which displays organization-specific cyber threat data by identifying users who pose the greatest cyber risk; and Mimecast mobile and desktop applications for mobile, PC and Mac users, as well as data center operations. The company sells its services through direct sales and distribution partners. Mimecast Limited was founded in 2003 and is based in London, UK.



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Sarah J. Greer