Posts about Activision Blizzard
I saw this being discussed in a non-investing sub, was curious to see what people here think. I'm a big MSFT fan but not sure what to expect of this news.
MSFT is up 7% and ATVI is down 11% at the time of me posting.
Additional articles with mostly same info:
https://www.cnbc.com/2023/04/26/britain-blocks-microsoft-acquisition-of-activision-blizzard.html
I want to add to my portfolio a gaming company, so I decided to take a closer look at the gaming giants - Electronic Arts and Activision Blizzard, I decided to choose only one because I want to keep my exposure levels to this sector to a minimum.
Feel free to agree / disagree with my research + My personal opinion will be added to the 1st comment. **resources note** ~ At the bottom of the post !
Intro:
In my opinions both companies are very interesting, on the EA side, you will find many beloved games such as: FIFA, MADDEN, UFC, NHL, BATTELFIELD, MEDAL OF HONOR, etcโฆ (Fun fact: FIFA 21 for sold 325 million copies!)
But on the ATVI side you may find games like : CALL OF DUTY ( Modern Warfare 2 sold 25.02 Million copies) CRASH BANDICOT, WORLD OF WARCRAFT, DIABLO, CANDY CRASH, etcโฆ
So, lets dig into the financials!
~ Companies overview ~
Market cap: $64.106B (ATVI) VS $40.678B (EA)
Revenues (2020): $8.09B (ATVI) VS $5.54B (EA)
Revenues Profit comparison - jika.ioCost of Revenues (2020): $2.26B (ATVI) VS $1.37B (EA)
Cost of Revenues Profit comparison - jika.ioGross Profit (2020): $5.83B (ATVI) VS $4.17B (EA)
Gross Profit comparison - jika.io~ Key metrics comparison ~
Revenue per share (2020): $10.96 (ATVI) VS $18.90 (EA)
Revenue per share comparison - jika.ioNet Income per share (2020): $2.84 (ATVI) VS $10.37 (EA)
Net Income per share comparison - jika.ioCash per share (2020): $11.19 (ATVI) VS $19.57 (EA)
Cash per share comparison - jika.io~ Ratios comparison ~
Gross Profit margin: 2019 67.73%, 2020 72.05% (ATVI) VS 2019 73.29%, 2020 75.28% (EA)
Gross Profit margin comparison - jika.ioNet Profit margins (2021): 29.17% (ATVI) VS 14.87% (EA)
Net Profit margin comparison - jika.ioReturn on equity (2021): 17.72% (ATVI) VS 10.68% (EA)
ROE comparison - jika.io~ Balance sheet comparison ~
Short Term debt (2020): $25M (ATVI) VS $600M (EA)
Short Term debt comparison - jika.iolong Term debt (2020): $3.60B (ATVI) VS $0.40B (EA)
long Term debt comparison - jika.ioCash and cash equivalents (2020): $8.65B (ATVI) VS $3.77B (EA)
Cash and cash equivalents comparison - jika.ioThe growth analysis is a quarterly comparison between 2019 to 2020 financials results- ( last quarter reported).
Revenue growth: 0.92% (ATVI) VS 15.23% (EA)
Revenue growth comparison - jika.ioGross Profit growth: 20.35% (ATVI) VS 2.59% (EA)
Gross Profit growth comparison - jika.ioEPS growth: 41.44% (ATVI) VS 172.44% (EA)
EPS growth comparison - jika.ioNet income growth: 46.17% (ATVI) VS 198.23% (EA)
Net income growth comparison - jika.ioR&D expanses growth: -5.10% (ATVI) VS 10.04% (EA)
R&D expanses growth comparison - jika.ioATVI: Based on 17 Wall Street analysts โ 15 Buy 2 hold 0 sell
Estimates โ low: $100, Average: $114.25, High: $125
ATVI analyst rank - tipranksEA: Based on 21 Wall Street analysts โ 17 Buys 4 hold 0 sell
Estimates โ low: $148, Average: $172.10, High: $195
EA analyst rank - tiprankswhy this is important ? recruiting employees growth indicated that the company still looking to grow revenues, expend to different locations, releasing new products.On the other hand, companies that layoff employees, trying to move to more lean business model, expanding their operations is not their first priority anymore.
2020 โ 9.50K (ATVI) VS 11K (EA)
Both companies show an extensive growth, whether its financial or popularity among their fan base, but after considering all factors, Activision Blizzard has the upper hand.
Even though, it may seems that EA release more games then ATVI, has a diverse library of successful games.
moreover, after looking at both companies financials and growth indicators, it appears that ATVI's revenue growth is much stronger than EA's, and with a bigger gross profit to be considered .. my winner is definitely Activision Blizzard
** Resources list **
JIKA.IO - Financial Comparison
tipranks - Analysts data
FINVIZ.COM - companies stats
cnn.com - employees numbers
