Reviewing Lottery.com (NASDAQ:LTRY) & Electronic Arts (NASDAQ:EA)

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

Analyst Ratings

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

	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 target price of $165.37, suggesting a potential upside of 1.63%. Given Electronic Arts’ stronger consensus rating and higher possible upside, analysts clearly believe Electronic Arts is more favorable than Lottery.com.

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%

Volatility and Risk

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

Institutional and Insider 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 company insiders. Comparatively, 0.2% of Electronic Arts shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lottery.com	$6.48 million	0.48	-$25.47 million	($9.62)	-0.03
Electronic Arts	$7.56 billion	5.64	$1.27 billion	$3.89	41.83

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.