Contrasting Lottery.com (NASDAQ:LTRY) and Electronic Arts (NASDAQ:EA)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Lottery.com and Electronic Arts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lottery.com	0	0	0	0	0.00
Electronic Arts	0	8	12	1	2.67

Electronic Arts has a consensus price target of $165.37, indicating a potential upside of 3.36%. Given Electronic Arts’ stronger consensus rating and higher possible upside, analysts clearly believe Electronic Arts is more favorable than Lottery.com.

Insider & Institutional Ownership

7.7% of Lottery.com shares are held by institutional investors. Comparatively, 90.2% of Electronic Arts shares are held by institutional investors. 19.9% of Lottery.com shares are held by insiders. Comparatively, 0.2% of Electronic Arts shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Lottery.com has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lottery.com	-505.07%	-74.33%	-43.74%
Electronic Arts	14.12%	18.56%	10.48%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lottery.com	$6.48 million	0.45	-$25.47 million	($9.62)	-0.03
Electronic Arts	$7.56 billion	5.55	$1.27 billion	$3.89	41.13

Electronic Arts has higher revenue and earnings than Lottery.com. Lottery.com 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 Lottery.com on 13 of the 15 factors compared between the two stocks.

About Lottery.com

Lottery.com Inc., a digital publisher, provides lottery data results, jackpots, results, and other data. The company delivers daily results of approximately 800 domestic and international lottery games from 40 countries, including the United States, Canada, and the United Kingdom to 400 digital publishers and media organizations. Lottery.com Inc. is headquartered in Spicewood, Texas.

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.