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

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

Company Profile

SymbolEATTWO
Company NameElectronic Arts Inc.Take-Two Interactive Software, Inc.
CountryUnited StatesUnited States
GICS SectorCommunication ServicesCommunication Services
GICS IndustryEntertainmentEntertainment
Market Capitalization44.64 billion USD43.56 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateSeptember 20, 1989April 15, 1997
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of EA and TTWO 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. TTWO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolEATTWO
5-Day Price Return9.62%4.26%
13-Week Price Return19.52%4.37%
26-Week Price Return35.15%28.98%
52-Week Price Return22.27%60.32%
Month-to-Date Return16.99%6.02%
Year-to-Date Return21.94%28.28%
10-Day Avg. Volume3.73M2.35M
3-Month Avg. Volume3.12M2.25M
3-Month Volatility26.34%24.18%
Beta0.751.01

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.

TTWO

-91.27%

Entertainment Industry

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

TTWO has a negative Return on Equity of -91.27%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

EA vs. TTWO: A comparison of their Return on Equity (TTM) against the Entertainment industry benchmark.

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.

TTWO

-79.50%

Entertainment Industry

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

TTWO has a negative Net Profit Margin of -79.50%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

EA vs. TTWO: A comparison of their Net Profit Margin (TTM) against the Entertainment industry benchmark.

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.

TTWO

-77.94%

Entertainment Industry

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

TTWO has a negative Operating Profit Margin of -77.94%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

EA vs. TTWO: A comparison of their Operating Profit Margin (TTM) against the Entertainment industry benchmark.

Profitability at a Glance

SymbolEATTWO
Return on Equity (TTM)15.27%-91.27%
Return on Assets (TTM)8.23%-37.42%
Net Profit Margin (TTM)13.94%-79.50%
Operating Profit Margin (TTM)19.09%-77.94%
Gross Profit Margin (TTM)79.14%55.73%

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.

TTWO

0.78

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

TTWO’s Current Ratio of 0.78 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.

EA vs. TTWO: A comparison of their Current Ratio (MRQ) against the Entertainment industry benchmark.

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.

TTWO

1.71

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

With a Debt-to-Equity Ratio of 1.71, TTWO operates with exceptionally high leverage compared to the Entertainment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

EA vs. TTWO: A comparison of their Debt-to-Equity Ratio (MRQ) against the Entertainment industry benchmark.

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.

TTWO

-44.74

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

TTWO has a negative Interest Coverage Ratio of -44.74. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

EA vs. TTWO: A comparison of their Interest Coverage Ratio (TTM) against the Entertainment industry benchmark.

Financial Strength at a Glance

SymbolEATTWO
Current Ratio (MRQ)0.840.78
Quick Ratio (MRQ)0.840.67
Debt-to-Equity Ratio (MRQ)0.311.71
Interest Coverage Ratio (TTM)190.43-44.74

Growth

Revenue Growth

EA vs. TTWO: 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. TTWO: 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

0.44%

Entertainment Industry

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

EA’s Dividend Yield of 0.44% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.

TTWO

0.00%

Entertainment Industry

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

TTWO 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. TTWO: A comparison of their Dividend Yield (TTM) against the Entertainment industry benchmark.

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.

TTWO

0.00%

Entertainment Industry

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

TTWO 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. TTWO: A comparison of their Dividend Payout Ratio (TTM) against the Entertainment industry benchmark.

Dividend at a Glance

SymbolEATTWO
Dividend Yield (TTM)0.44%0.00%
Dividend Payout Ratio (TTM)18.91%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

EA

43.10

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

EA’s P/E Ratio of 43.10 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.

TTWO

--

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

P/E Ratio data for TTWO is currently unavailable.

EA vs. TTWO: A comparison of their Price-to-Earnings Ratio (TTM) against the Entertainment industry benchmark.

Price-to-Sales Ratio (TTM)

EA

6.01

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

EA’s P/S Ratio of 6.01 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.

TTWO

7.62

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

TTWO’s P/S Ratio of 7.62 is in the upper echelon for the Entertainment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

EA vs. TTWO: A comparison of their Price-to-Sales Ratio (TTM) against the Entertainment industry benchmark.

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.

TTWO

17.11

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

TTWO’s P/B Ratio of 17.11 is in the upper tier for the Entertainment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

EA vs. TTWO: A comparison of their Price-to-Book Ratio (MRQ) against the Entertainment industry benchmark.

Valuation at a Glance

SymbolEATTWO
Price-to-Earnings Ratio (TTM)43.10--
Price-to-Sales Ratio (TTM)6.017.62
Price-to-Book Ratio (MRQ)6.6017.11
Price-to-Free Cash Flow Ratio (TTM)24.17190.77