Head-To-Head Analysis: Electronic Arts (NASDAQ:EA) and MongoDB (NASDAQ:MDB)

MongoDB (NASDAQ:MDB) and Electronic Arts (NASDAQ:EA) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Insider and Institutional Ownership

89.3% of MongoDB shares are held by institutional investors. Comparatively, 90.2% of Electronic Arts shares are held by institutional investors. 3.6% of MongoDB 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, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

MongoDB has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Profitability

This table compares MongoDB and Electronic Arts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MongoDB	-12.08%	-15.06%	-5.99%
Electronic Arts	14.12%	18.56%	10.48%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for MongoDB and Electronic Arts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MongoDB	1	5	20	1	2.78
Electronic Arts	0	8	11	1	2.65

MongoDB presently has a consensus price target of $337.96, suggesting a potential upside of 24.32%. Electronic Arts has a consensus price target of $164.39, suggesting a potential upside of 8.68%. Given MongoDB’s stronger consensus rating and higher probable upside, research analysts plainly believe MongoDB is more favorable than Electronic Arts.

Earnings and Valuation

This table compares MongoDB and Electronic Arts”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MongoDB	$1.68 billion	11.93	-$176.60 million	($3.02)	-90.02
Electronic Arts	$7.56 billion	5.28	$1.27 billion	$3.89	38.88

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

Summary

Electronic Arts beats MongoDB on 8 of the 14 factors compared between the two stocks.

About MongoDB

MongoDB, Inc., together with its subsidiaries, provides general purpose database platform worldwide. The company provides MongoDB Atlas, a hosted multi-cloud database-as-a-service solution; MongoDB Enterprise Advanced, a commercial database server for enterprise customers to run in the cloud, on-premises, or in a hybrid environment; and Community Server, a free-to-download version of its database, which includes the functionality that developers need to get started with MongoDB. It offers professional services comprising consulting and training. The company was formerly known as 10gen, Inc. and changed its name to MongoDB, Inc. in August 2013. MongoDB, Inc. was incorporated in 2007 and is headquartered in New York, New York.

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.