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APP vs. EA: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at APP and EA, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

APP dominates in value with a market cap of 121.26 billion USD, eclipsing EA’s 37.74 billion USD by roughly 3.21×.

APP’s beta of 2.39 points to much larger expected swings compared to EA’s calmer 0.75, suggesting both higher upside and downside potential.

SymbolAPPEA
Company NameAppLovin CorporationElectronic Arts Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - ApplicationElectronic Gaming & Multimedia
CEOMr. Adam Arash ForoughiMr. Andrew Wilson
Price358.35 USD150.5 USD
Market Cap121.26 billion USD37.74 billion USD
Beta2.390.75
ExchangeNASDAQNASDAQ
IPO DateApril 15, 2021September 20, 1989
ADRNoNo

Performance Comparison

This chart compares the performance of APP and EA over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

For a detailed comparison of valuation metrics between APP and EA, please refer to the table below.

SymbolAPPEA
Price-to-Earnings Ratio (P/E, TTM)63.4335.17
Forward PEG Ratio (TTM)2.431.86
Price-to-Sales Ratio (P/S, TTM)23.615.06
Price-to-Book Ratio (P/B, TTM)211.646.17
Price-to-Free Cash Flow Ratio (P/FCF, TTM)47.8720.31
EV-to-EBITDA (TTM)47.3020.20
EV-to-Sales (TTM)24.235.04
EV-to-Free Cash Flow (TTM)49.1220.21

Dividend Comparison

APP offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while EA provides a 0.50% dividend yield, giving investors a steady income stream.

SymbolAPPEA
Dividend Yield (TTM)0.00%0.50%

Financial Strength Metrics Comparison

This section dives into the financial resilience of APP and EA, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • EA’s current ratio of 0.95 indicates its assets may not cover near-term debts, whereas APP at 1.68 maintains healthy liquidity.
  • APP is heavily leveraged (debt-to-equity ratio 6.45), which can boost returns but raises risk if borrowing costs climb, while EA at 0.31 keeps leverage at a more moderate level.
SymbolAPPEA
Current Ratio (TTM)1.680.95
Quick Ratio (TTM)1.680.95
Debt-to-Equity Ratio (TTM)6.450.31
Debt-to-Assets Ratio (TTM)0.650.16
Interest Coverage Ratio (TTM)7.4120.61