NetEase (NTES) vs. Its Peers Head to Head Review

NetEase (NASDAQ: NTES) is one of 187 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its rivals? We will compare NetEase to related businesses based on the strength of its institutional ownership, risk, profitability, dividends, earnings, analyst recommendations and valuation.

Earnings and Valuation

This table compares NetEase and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NetEase	$5.50 billion	$1.67 billion	22.93
NetEase Competitors	$2.79 billion	$288.44 million	301.14

NetEase has higher revenue and earnings than its rivals. NetEase is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

NetEase has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, NetEase’s rivals have a beta of 1.10, indicating that their average stock price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for NetEase and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetEase	3	4	7	0	2.29
NetEase Competitors	768	4658	7457	176	2.54

NetEase presently has a consensus target price of $325.92, suggesting a potential downside of 6.44%. As a group, “IT Services & Consulting” companies have a potential downside of 11.67%. Given NetEase’s higher possible upside, research analysts plainly believe NetEase is more favorable than its rivals.

Profitability

This table compares NetEase and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NetEase	25.34%	31.84%	21.48%
NetEase Competitors	-22.42%	-273.86%	-5.07%

Institutional and Insider Ownership

50.4% of NetEase shares are held by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 54.7% of NetEase shares are held by insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

NetEase pays an annual dividend of $3.63 per share and has a dividend yield of 1.0%. NetEase pays out 23.9% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.5% and pay out 36.9% of their earnings in the form of a dividend.

Summary

NetEase beats its rivals on 8 of the 15 factors compared.

About NetEase

NetEase, Inc. (NetEase) is a technology company. The Company operates an interactive online community in China and is a provider of Chinese language content and services through its online games, Internet media, e-mail, e-commerce and other businesses. The Company operates through three segments: Online Game Services; Advertising Services, and E-mail, E-commerce and Others. Its online games business primarily focuses on offering personal computer (PC)-client massively multi-player online role-playing games (PC-client MMORPGs), as well as mobile games to the Chinese market. The NetEase Websites provide Internet users with Chinese language online services centered over three core service categories, which include content, community and communication. Its online advertising offerings include banner advertising, direct e-mail, sponsored special events, games, contests and other activities. It offers free and fee-based premium e-mail services to its individual users and corporate users.

Receive News & Ratings for NetEase Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NetEase and related companies with MarketBeat.com's FREE daily email newsletter.

Let's block ads! (Why?)