Head to Head Analysis: Bottomline Technologies (NASDAQ:EPAY) & Electronic Arts (NASDAQ:EA)

Head to Head Analysis: Bottomline Technologies (NASDAQ:EPAY) & Electronic Arts (NASDAQ:EA)



Bottomline Technologies (NASDAQ:EPAY – Get Rating) and Electronic Arts (NASDAQ:EA – Get Rating) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bottomline Technologies $471.40 million 5.42 -$16.29 million ($0.50) -113.54
Electronic Arts $5.63 billion 6.17 $837.00 million $2.22 55.66

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

Insider and Institutional Ownership

87.8% of Bottomline Technologies shares are owned by institutional investors. Comparatively, 89.7% of Electronic Arts shares are owned by institutional investors. 2.8% of Bottomline Technologies shares are owned by company insiders. Comparatively, 0.7% of Electronic Arts shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Bottomline Technologies -6.78% -3.75% -2.05%
Electronic Arts 9.83% 18.59% 10.89%

Risk & Volatility

Bottomline Technologies has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bottomline Technologies and Electronic Arts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bottomline Technologies 1 7 0 0 1.88
Electronic Arts 0 4 16 0 2.80

Bottomline Technologies presently has a consensus target price of $54.17, indicating a potential downside of 4.59%. Electronic Arts has a consensus target price of $162.70, indicating a potential upside of 31.67%. Given Electronic Arts’ stronger consensus rating and higher possible upside, analysts clearly believe Electronic Arts is more favorable than Bottomline Technologies.

Summary

Electronic Arts beats Bottomline Technologies on 12 of the 14 factors compared between the two stocks.

Bottomline Technologies Company Profile (Get Rating)

Bottomline Technologies, Inc. provides various solutions for the banking, financial services, insurance, healthcare, technology, retail, communications, education, media, manufacturing, and government industries. It operates through four segments: Cloud Solutions, Banking Solutions, Payments and Documents, and Other. The company’s products and services include Paymode-X, a SaaS solution, which allows businesses to transition from legacy invoice-to-pay processes maximizing cost-savings, efficiency, and security; PTX, a payment platform that offers various ways to pay and get paid to organizations; and financial messaging solutions for risk management to financial institutions and corporations. It also provides Digital Banking IQ, an intelligent engagement platform for banking and payments; and legal spend management solutions, which integrate with claims management, and time and billing systems to automate legal invoice management processes, as well as provide insight into various areas of a company’s outside legal spend. In addition, the company offers fraud and financial crime solutions to monitor, replay, and analyze user behavior and payment transactions to flag and prevent suspicious activity in real time; and healthcare solutions, including electronic signature and mobile document. Further, it provides consulting, implementation, and training services. The company serves customers in the United States, the United Kingdom, Continental Europe, the Asia-Pacific, and the Middle East. Bottomline Technologies, Inc. was founded in 1989 and is headquartered in Portsmouth, New Hampshire.

Electronic Arts Company Profile (Get Rating)

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 Plants vs. Zombies brands; and license games from others, including FIFA, Madden NFL, UFC, NHL, Formula 1, and Star Wars brands. The company also provides advertising services; and 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.



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