Head-To-Head Comparison: JFrog (NASDAQ:FROG) vs. Electronic Arts (NASDAQ:EA)

JFrog (NASDAQ:FROG) and Electronic Arts (NASDAQ:EA) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

85.0% of JFrog shares are held by institutional investors. Comparatively, 90.2% of Electronic Arts shares are held by institutional investors. 15.7% of JFrog 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, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for JFrog and Electronic Arts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JFrog	0	2	13	0	2.87
Electronic Arts	0	8	9	0	2.53

JFrog presently has a consensus price target of $43.93, indicating a potential upside of 20.66%. Electronic Arts has a consensus price target of $147.50, indicating a potential upside of 6.92%. Given JFrog’s stronger consensus rating and higher possible upside, research analysts plainly believe JFrog is more favorable than Electronic Arts.

Volatility and Risk

JFrog has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JFrog	-13.29%	-4.62%	-3.26%
Electronic Arts	16.83%	18.81%	10.58%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JFrog	$349.89 million	10.61	-$61.26 million	($0.47)	-77.53
Electronic Arts	$7.56 billion	4.84	$1.27 billion	$4.68	29.44

Electronic Arts has higher revenue and earnings than JFrog. JFrog 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 JFrog on 7 of the 13 factors compared between the two stocks.

About JFrog

JFrog Ltd. provides end-to-end hybrid software supply chain platform in the United States, Israel, India, and internationally. The company offers JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages; JFrog Curation that functions as a guardian outside the software development pipeline, controlling the admission of packages into an organization, primarily from open source or public repositories; JFrog Xray, which scans JFrog Artifactory to secure all software packages; JFrog Advanced Security, an optional add-on for select JFrog subscriptions; and JFrog Distribution that provides software package distribution. It also provides JFrog Artifactory Edge that utilizes and leverages metadata from JFrog Artifactory to facilitate the transfer of the incremental changes in software packages from their previous versions; JFrog Mission Control, a platform control panel that provides a view of moving pieces of an organization's software supply chain workflow; JFrog Insight, a DevOps intelligence tool; JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance in IoT device fleets; and JFrog Pipelines, a continuous integration and delivery tool for automating and orchestrating the movement of software packages. In addition, the company provides JFrog Pro that provides access to the universal version of JFrog Artifactory and ongoing updates, upgrades, and bug fixes; JFrog Pro X, a self-hosted-only subscription; JFrog Enterprise X, which offers cluster configuration, federated repositories, multi-region replication, larger enterprise-scale deployments, service-level agreement support, and deeper security; and JFrog Enterprise Plus, a full platform subscription option. It serves technology, financial services, retail, healthcare, and telecommunications organizations. JFrog Ltd. was incorporated in 2008 and is headquartered in Sunnyvale, California.

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.