Comparing Bentley Systems (NASDAQ:BSY) & Electronic Arts (NASDAQ:EA)

Electronic Arts (NASDAQ:EAGet Free Report) and Bentley Systems (NASDAQ:BSYGet Free Report) are both large-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Valuation & Earnings

This table compares Electronic Arts and Bentley Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Electronic Arts $7.43 billion 5.06 $802.00 million $3.97 35.42
Bentley Systems $1.10 billion 13.67 $174.74 million $0.53 99.68

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

Volatility and Risk

Electronic Arts has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Bentley Systems has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Electronic Arts and Bentley Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electronic Arts 0 8 10 0 2.56
Bentley Systems 0 3 6 0 2.67

Electronic Arts currently has a consensus target price of $146.94, suggesting a potential upside of 4.50%. Bentley Systems has a consensus target price of $57.00, suggesting a potential upside of 7.89%. Given Bentley Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Bentley Systems is more favorable than Electronic Arts.

Profitability

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

Net Margins Return on Equity Return on Assets
Electronic Arts 14.09% 20.58% 11.48%
Bentley Systems 14.35% 36.06% 7.19%

Institutional & Insider Ownership

90.4% of Electronic Arts shares are held by institutional investors. Comparatively, 44.2% of Bentley Systems shares are held by institutional investors. 0.2% of Electronic Arts shares are held by insiders. Comparatively, 21.7% of Bentley Systems 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.

Dividends

Electronic Arts pays an annual dividend of $0.76 per share and has a dividend yield of 0.5%. Bentley Systems pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. Electronic Arts pays out 19.1% of its earnings in the form of a dividend. Bentley Systems pays out 37.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bentley Systems has raised its dividend for 1 consecutive years. Electronic Arts is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Bentley Systems beats Electronic Arts on 9 of the 17 factors compared between the two stocks.

About Electronic Arts

(Get Free Report)

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.

About Bentley Systems

(Get Free Report)

Bentley Systems, Incorporated, together with its subsidiaries, provides infrastructure engineering software solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers open modeling and open simulation applications for infrastructure design integration, which include MicroStation, OpenRoads, OpenRail, OpenPlant, OpenBuildings, OpenBridge, OpenSite, OpenFlows, STAAD and RAM, SACS, MOSES, AutoPIPE, SITEOPS, CUBE, DYNAMEQ, EMME, and LEGION; and geoprofessional applications for modeling and simulation of near and deep subsurface conditions, including Leapfrog, AGS Workbench, GeoStudio, Imago, MX Deposit, Oasis montaj, PLAXIS, and OpenGround. It also provides project delivery systems that support collaboration, work-sharing, and 4D construction modeling for infrastructure project delivery enterprises, such as ProjectWise, ProjectWise Design Review Service, and SYNCHRO; and asset and network performance systems, such as AssetWise ALIM, AssetWise Asset Reliability, AssetWise Enterprise Interoperability, AssetWise 4D Analytics, AssetWise Linear, and Seequent Central. In addition, it offers industry solutions comprising AssetWise Linear SUPERLOAD, AssetWise Linear Analytics, AssetWise Inspections, ContextCapture, OpenCities, OpenUtilities, OpenTower, OpenWindPower, Power Line, SPIDA, OrbitGT, sensemetrics, PlantSight, and WaterSight. The company serves civil, structural, geotechnical, geoscience subsurface engineers, architects, geospatial professionals, city and regional planners, contractors, fabricators, and operations and maintenance engineers. Bentley Systems, Incorporated was incorporated in 1984 and is headquartered in Exton, Pennsylvania.

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