UiPath (NYSE:PATH) vs. Electronic Arts (NASDAQ:EA) Financial Comparison

Electronic Arts (NASDAQ:EA) and UiPath (NYSE:PATH) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Electronic Arts and UiPath, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electronic Arts	0	8	11	1	2.65
UiPath	0	16	2	0	2.11

Electronic Arts presently has a consensus price target of $164.39, suggesting a potential upside of 4.07%. UiPath has a consensus price target of $17.47, suggesting a potential upside of 32.76%. Given UiPath’s higher possible upside, analysts plainly believe UiPath is more favorable than Electronic Arts.

Risk & Volatility

Electronic Arts has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, UiPath has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Insider & Institutional Ownership

90.2% of Electronic Arts shares are held by institutional investors. Comparatively, 62.5% of UiPath shares are held by institutional investors. 0.2% of Electronic Arts shares are held by company insiders. Comparatively, 22.4% of UiPath shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Electronic Arts and UiPath’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%
UiPath	-8.13%	-3.98%	-2.76%

Valuation and Earnings

This table compares Electronic Arts and UiPath”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electronic Arts	$7.41 billion	5.63	$1.27 billion	$3.89	40.61
UiPath	$1.31 billion	5.53	-$89.88 million	($0.20)	-65.80

Electronic Arts has higher revenue and earnings than UiPath. UiPath 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 UiPath on 11 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 UiPath

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric. It serves banking and financial services, healthcare, insurance, public sectors, manufacturing, retail, and telecom industries. The company was founded in 2005 and is headquartered in New York, New York.