DIRTT Environmental (NASDAQ:DRTT) and Electronic Arts (NASDAQ:EA) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DIRTT Environmental $247.74 million 0.41 -$4.40 million ($0.05) -23.20
Electronic Arts $5.54 billion 7.03 $3.04 billion $4.76 28.32

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

Profitability

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

Net Margins Return on Equity Return on Assets
DIRTT Environmental N/A N/A N/A
Electronic Arts 54.88% 16.79% 11.16%

Analyst Ratings

This is a summary of current recommendations for DIRTT Environmental and Electronic Arts, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DIRTT Environmental 0 0 2 0 3.00
Electronic Arts 0 9 20 1 2.73

DIRTT Environmental presently has a consensus price target of $4.75, indicating a potential upside of 309.48%. Electronic Arts has a consensus price target of $130.54, indicating a potential downside of 3.15%. Given DIRTT Environmental’s stronger consensus rating and higher possible upside, research analysts plainly believe DIRTT Environmental is more favorable than Electronic Arts.

Institutional and Insider Ownership

39.0% of DIRTT Environmental shares are owned by institutional investors. Comparatively, 88.0% of Electronic Arts shares are owned by institutional investors. 0.9% of Electronic Arts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Electronic Arts beats DIRTT Environmental on 12 of the 14 factors compared between the two stocks.

DIRTT Environmental Company Profile

DIRTT Environmental Solutions Ltd. engages in the manufacture of customized interiors. It produces its products by using three dimensional design, configuration and manufacturing software, and in-house manufacturing of its prefabricated interior construction solutions. The company was founded by Geoff Gosling, Barrie Loberg, Kristin Moore, and Mogens F. Smed in 2004 and is headquartered in Calgary, Canada.

Electronic Arts Company Profile

Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. The company develops and publishes games and services across various genres, such as sports, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, Mass Effect, Need for Speed, The Sims, and Plants v. Zombies brands; and license games from others, such as FIFA, Madden NFL, and Star Wars. It also provides advertisement services on its online Web pages and games; and licenses its game software to third parties. The company markets and sells its games and services through digital distribution channels, as well as through retail channels, such as mass market retailers, electronics specialty stores, and game software specialty stores. Electronic Arts Inc. was founded in 1982 and is headquartered in Redwood City, California.

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