Activision Blizzard (NASDAQ:ATVI) and Electronic Arts (NASDAQ:EA) are two of the biggest players in the video gaming industry. Although they're similarly situated, with similar growth opportunities, and offer dividends that yield a like amount, one still manages to stand out.
In this clip from from the Industry Focus: Tech podcast, Motley Fool analysts Dylan Lewis and David Kretzmann talk about which one they'd rather invest in and why.
This podcast was recorded on June 10, 2016.
Dylan Lewis: The two giants in the space, Activision and EA, a little bit different as company profiles. A little bit more growth priced into Activision at the moment. They also have a 0.7% dividend yield?
David Kretzmann: Yeah.
Lewis: Yeah, so it's there. It's not big, but it's there. EA is a little bit more moderate growth expectation. One in particular that you like more?
Kretzmann: I honestly like both these companies. I personally own shares of both of them. I think if you were only going to pick one, Activision would probably be the one I'd lean toward, just because I like how they're making these different efforts with mobile games, e-sports, and that movie and TV studio. I think they have more growth avenues beyond just the game franchises.
That's more of the model that EA is focusing on. They've done a good job with that. They've really turned that company around over the past three to four years. The new CEO at Electronic Arts, he's a young Aussie, Andrew Wilson. He's in his 40s. He's done a great job turning around that company and the culture.
I think if you had to pick one, Activision just has a more diversified line, not only of franchises, but also of different divisions with e-sports, movies and TV, all those things. It's run by Bobby Kodick, who has just been a wonderful CEO. I think it's hard to go wrong with either of these companies, but if I had to pick one, I would probably lean toward Activision at this point.