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.
David Kretzmann owns shares of Activision Blizzard and Electronic Arts. Dylan Lewis has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Activision Blizzard. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.