Financial Comparison: MongoDB (NASDAQ:MDB) vs. Electronic Arts (NASDAQ:EA)

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

Insider and Institutional Ownership

90.2% of Electronic Arts shares are owned by institutional investors. Comparatively, 89.3% of MongoDB shares are owned by institutional investors. 0.2% of Electronic Arts shares are owned by insiders. Comparatively, 3.6% of MongoDB shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Electronic Arts has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, MongoDB has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Analyst Recommendations

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

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

Electronic Arts presently has a consensus price target of $164.39, suggesting a potential upside of 7.52%. MongoDB has a consensus price target of $337.96, suggesting a potential upside of 26.39%. Given MongoDB’s stronger consensus rating and higher possible upside, analysts plainly believe MongoDB is more favorable than Electronic Arts.

Profitability

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

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

Valuation & Earnings

This table compares Electronic Arts and MongoDB”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electronic Arts	$7.56 billion	5.34	$1.27 billion	$3.89	39.30
MongoDB	$1.68 billion	11.74	-$176.60 million	($3.02)	-88.54

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 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.

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.