Head-To-Head Review: UiPath (NYSE:PATH) vs. Electronic Arts (NASDAQ:EA)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UiPath	$1.31 billion	5.54	-$89.88 million	($0.20)	-65.85
Electronic Arts	$7.56 billion	5.48	$1.27 billion	$3.89	40.59

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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for UiPath and Electronic Arts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UiPath	0	16	2	0	2.11
Electronic Arts	0	8	12	1	2.67

UiPath currently has a consensus price target of $17.47, suggesting a potential upside of 32.65%. Electronic Arts has a consensus price target of $165.37, suggesting a potential upside of 4.72%. Given UiPath’s higher probable upside, equities analysts plainly believe UiPath is more favorable than Electronic Arts.

Insider and Institutional Ownership

62.5% of UiPath shares are owned by institutional investors. Comparatively, 90.2% of Electronic Arts shares are owned by institutional investors. 22.4% of UiPath shares are owned by insiders. Comparatively, 0.2% of Electronic Arts shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UiPath	-8.13%	-3.98%	-2.76%
Electronic Arts	14.12%	18.56%	10.48%

Volatility and Risk

UiPath has a beta of 0.87, suggesting that its share price is 13% less 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.

Summary

Electronic Arts beats UiPath on 11 of the 15 factors compared between the two stocks.

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.

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.