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

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Here’s a clear look at EA and TTD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolEATTD
Company NameElectronic Arts Inc.The Trade Desk, Inc.
CountryUnited StatesUnited States
GICS SectorCommunication ServicesCommunication Services
GICS IndustryEntertainmentMedia
Market Capitalization42.87 billion USD25.68 billion USD
ExchangeNasdaqGSNasdaqGM
Listing DateSeptember 20, 1989September 21, 2016
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of EA and TTD by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

EA vs. TTD: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolEATTD
5-Day Price Return-4.29%3.49%
13-Week Price Return13.86%-31.17%
26-Week Price Return31.98%-35.88%
52-Week Price Return14.47%-48.82%
Month-to-Date Return12.35%-39.59%
Year-to-Date Return17.11%-55.31%
10-Day Avg. Volume3.64M30.08M
3-Month Avg. Volume3.03M12.63M
3-Month Volatility26.75%86.86%
Beta0.741.48

Profitability

Return on Equity (TTM)

EA

15.27%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

EA’s Return on Equity of 15.27% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.

TTD

15.19%

Media Industry

Max
34.77%
Q3
16.01%
Median
10.70%
Q1
2.80%
Min
-2.36%

TTD’s Return on Equity of 15.19% is on par with the norm for the Media industry, indicating its profitability relative to shareholder equity is typical for the sector.

EA vs. TTD: A comparison of their Return on Equity (TTM) against their respective Entertainment and Media industry benchmarks.

Net Profit Margin (TTM)

EA

13.94%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

EA’s Net Profit Margin of 13.94% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.

TTD

15.57%

Media Industry

Max
16.04%
Q3
10.15%
Median
5.18%
Q1
2.39%
Min
-3.66%

A Net Profit Margin of 15.57% places TTD in the upper quartile for the Media industry, signifying strong profitability and more effective cost management than most of its peers.

EA vs. TTD: A comparison of their Net Profit Margin (TTM) against their respective Entertainment and Media industry benchmarks.

Operating Profit Margin (TTM)

EA

19.09%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

EA’s Operating Profit Margin of 19.09% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

TTD

17.73%

Media Industry

Max
24.65%
Q3
13.68%
Median
8.96%
Q1
4.53%
Min
-8.09%

An Operating Profit Margin of 17.73% places TTD in the upper quartile for the Media industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

EA vs. TTD: A comparison of their Operating Profit Margin (TTM) against their respective Entertainment and Media industry benchmarks.

Profitability at a Glance

SymbolEATTD
Return on Equity (TTM)15.27%15.19%
Return on Assets (TTM)8.23%7.17%
Net Profit Margin (TTM)13.94%15.57%
Operating Profit Margin (TTM)19.09%17.73%
Gross Profit Margin (TTM)79.14%79.41%

Financial Strength

Current Ratio (MRQ)

EA

0.84

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

EA’s Current Ratio of 0.84 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

TTD

1.71

Media Industry

Max
2.97
Q3
1.79
Median
1.39
Q1
0.92
Min
0.24

TTD’s Current Ratio of 1.71 aligns with the median group of the Media industry, indicating that its short-term liquidity is in line with its sector peers.

EA vs. TTD: A comparison of their Current Ratio (MRQ) against their respective Entertainment and Media industry benchmarks.

Debt-to-Equity Ratio (MRQ)

EA

0.31

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

EA’s Debt-to-Equity Ratio of 0.31 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

TTD

0.03

Media Industry

Max
2.02
Q3
1.06
Median
0.58
Q1
0.31
Min
0.00

Falling into the lower quartile for the Media industry, TTD’s Debt-to-Equity Ratio of 0.03 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

EA vs. TTD: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Entertainment and Media industry benchmarks.

Interest Coverage Ratio (TTM)

EA

190.43

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

With an Interest Coverage Ratio of 190.43, EA demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

TTD

44.57

Media Industry

Max
44.57
Q3
23.07
Median
4.52
Q1
2.14
Min
-10.82

TTD’s Interest Coverage Ratio of 44.57 is in the upper quartile for the Media industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

EA vs. TTD: A comparison of their Interest Coverage Ratio (TTM) against their respective Entertainment and Media industry benchmarks.

Financial Strength at a Glance

SymbolEATTD
Current Ratio (MRQ)0.841.71
Quick Ratio (MRQ)0.841.68
Debt-to-Equity Ratio (MRQ)0.310.03
Interest Coverage Ratio (TTM)190.4344.57

Growth

Revenue Growth

EA vs. TTD: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

EA vs. TTD: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

EA

0.46%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
Q1
0.00%
Min
0.00%

EA’s Dividend Yield of 0.46% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.

TTD

0.00%

Media Industry

Max
7.76%
Q3
4.16%
Median
1.67%
Q1
0.00%
Min
0.00%

TTD currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

EA vs. TTD: A comparison of their Dividend Yield (TTM) against their respective Entertainment and Media industry benchmarks.

Dividend Payout Ratio (TTM)

EA

18.91%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
Q1
0.00%
Min
0.00%

EA’s Dividend Payout Ratio of 18.91% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

TTD

0.00%

Media Industry

Max
165.03%
Q3
96.17%
Median
45.64%
Q1
14.80%
Min
0.00%

TTD has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

EA vs. TTD: A comparison of their Dividend Payout Ratio (TTM) against their respective Entertainment and Media industry benchmarks.

Dividend at a Glance

SymbolEATTD
Dividend Yield (TTM)0.46%0.00%
Dividend Payout Ratio (TTM)18.91%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

EA

41.09

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

EA’s P/E Ratio of 41.09 is within the middle range for the Entertainment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

TTD

61.22

Media Industry

Max
49.10
Q3
35.07
Median
17.34
Q1
10.39
Min
5.81

At 61.22, TTD’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Media industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

EA vs. TTD: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Entertainment and Media industry benchmarks.

Price-to-Sales Ratio (TTM)

EA

5.73

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

EA’s P/S Ratio of 5.73 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

TTD

9.53

Media Industry

Max
3.23
Q3
1.85
Median
1.05
Q1
0.78
Min
0.22

With a P/S Ratio of 9.53, TTD trades at a valuation that eclipses even the highest in the Media industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

EA vs. TTD: A comparison of their Price-to-Sales Ratio (TTM) against their respective Entertainment and Media industry benchmarks.

Price-to-Book Ratio (MRQ)

EA

6.60

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

EA’s P/B Ratio of 6.60 is within the conventional range for the Entertainment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

TTD

13.12

Media Industry

Max
4.30
Q3
2.57
Median
1.83
Q1
1.19
Min
0.51

At 13.12, TTD’s P/B Ratio is at an extreme premium to the Media industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

EA vs. TTD: A comparison of their Price-to-Book Ratio (MRQ) against their respective Entertainment and Media industry benchmarks.

Valuation at a Glance

SymbolEATTD
Price-to-Earnings Ratio (TTM)41.0961.22
Price-to-Sales Ratio (TTM)5.739.53
Price-to-Book Ratio (MRQ)6.6013.12
Price-to-Free Cash Flow Ratio (TTM)23.0534.25