Video Game Makers

Activision Blizzard and Electronic Arts are two companies with great fundamentals. The companies are also moving higher through an upward slanting channel and currently bouncing off their 50 day moving average. These are great signs from both a fundamental as well as a technical perspective so it's time to look at the numbers and compare the companies. 
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Activision Blizzard develops and publishes online, personal computer (PC), video game console, handheld, mobile, and tablet games. The company operates through two segments, Activision Publishing, Inc. and Blizzard Entertainment, Inc. The company develops, publishes, and sells interactive software products and content through retail channels or digital downloads; and downloadable content to a range of gamers. It also publishes subscription-based massively multiplayer online role-playing games; and strategy and role-playing games. In addition, the company maintains a proprietary online gaming service, Battle.net that facilitates the creation of user generated content, digital distribution, and online social connectivity in its games. Further, it engages in creating original film and television content; and provides warehousing, logistical, and sales distribution services to third-party publishers of interactive entertainment software, as well as manufacturers of interactive entertainment hardware products. The company serves retailers and distributors, including mass-market retailers, consumer electronics stores, discount warehouses, game specialty stores, and consumers through third-party distribution, licensing arrangements, and direct digital purchases in the United States, Canada, Canada, the United Kingdom, France, Germany, Ireland, Italy, Sweden, Spain, the Netherlands, Australia, South Korea, China, and internationally. Activision Blizzard, Inc. is headquartered in Santa Monica, California. (Summary)

Electronic Arts develops, markets, publishes, and distributes games, content, and services for consoles, personal computers, mobile phones, and tablets worldwide. It develops and publishes digital interactive entertainment games primarily under the FIFA, Madden NFL, Star Wars, Battlefield, The Sims, Need for Speed, Mass Effect, Dragon Age, Plants vs. Zombies, and Titanfall brand names. The company also offers casual games, such as cards, puzzles, and word games through its Pogo online service. Electronic Arts Inc. was founded in 1982 and is headquartered in Redwood City, California. (Summary)

12 October 2016
Price $43.33
1yr Target $47.49
Analysts 18
Dividend $0.26
Payout Ratio 26.00%

1yr Cap Gain 9.60%
Yield 0.60%
1yr Tot Return 10.20%

P/E 43.50
PEG 1.86
Beta 1.09

EPS (ttm) $1.00
EPS next yr $2.17
Forward P/E 20.00
EPS next 5yr 23.44%
1yr Price Support $50.86

Market Cap $32.18 Bil
Revenues $5.37 Bil
Earnings $742.00 Mil
Profit Margin 13.81%

Quick Ratio 1.50
Current Ratio 1.60
Debt/Equity 0.59

1yr RevGR 5.80%
3yr RevGR -1.33%
5yr RevGR 0.95%

1yr EarnGR 5.30%
3yr EarnGR 5.56%
5yr EarnGR 29.24%

1yr DivGR 15.00%
3yr DivGR 8.42%
5yr DivGR 8.92%

ROA 4.70%
ROE 9.00%

12 October 2016
Price $82.53
1yr Target $89.42
Analysts ---
Dividend $0.00
Payout Ratio ---

1yr Cap Gain 8.34%
Yield 0.00%
1yr Tot Return 8.34%

P/E 22.90
PEG 1.41
Beta 0.53

EPS (ttm) $3.60
EPS next yr $4.11
Forward P/E 20.08
EPS next 5yr 16.24%
1yr Price Support $66.74

Market Cap $25.05 Bil
Revenues $4.46 Bil
Earnings $1.15 Bil
Profit Margin 25.78%

Quick Ratio 2.40
Current Ratio 2.40
Debt/Equity 0.30

1yr RevGR -2.64%
3yr RevGR 4.95%
5yr RevGR 4.13%

1yr EarnGR 30.11%
3yr EarnGR 122.53%
5yr EarnGR NA

1yr DivGR NA
3yr DivGR NA
5yr DivGR NA

ROA 17.70%
ROE 34.80%

My Perspective

Both of these companies are in a tough business that can turn on the whim of 16 year old kids. While there may be a few adults playing video games, the vast majority of gamers are kids and young adults. And their allegiance to a particular brand is tentative at best. But they do have allegiance to particular games. So an investor that understands and/or plays video games would probably have an inside track to these investments. 

As for my type of investing, I'd only be interested in Activision Blizzard simply because it pays a dividend and Electronic Arts does not. And for the most part that's a deal breaker for me because at heart I'm a dividend growth investor. 

From a technical point of view it would be a tough call between the two. They're both in an upward trend and they're both ready to bounce off their 50 day moving average. So from a short term view they're probably equal to each other, so it's really a coin toss. Either way I hope the information is of some value to other investors.