NetEase (NASDAQ: NTES) is one of 184 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its rivals? We will compare NetEase to related companies based on the strength of its valuation, institutional ownership, dividends, earnings, analyst recommendations, risk and profitability.
Valuation & Earnings
This table compares NetEase and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|NetEase||$5.50 billion||$1.67 billion||24.63|
|NetEase Competitors||$2.79 billion||$290.02 million||336.65|
NetEase pays an annual dividend of $3.63 per share and has a dividend yield of 1.0%. NetEase pays out 25.1% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.6% and pay out 37.9% of their earnings in the form of a dividend.
Institutional and Insider Ownership
50.5% of NetEase shares are held by institutional investors. Comparatively, 61.5% of shares of all “IT Services & Consulting” companies are held by institutional investors. 54.7% of NetEase shares are held by company insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary 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 presently has a consensus target price of $322.77, suggesting a potential downside of 9.44%. As a group, “IT Services & Consulting” companies have a potential downside of 5.06%. Given NetEase’s rivals stronger consensus rating and higher probable upside, analysts plainly believe NetEase has less favorable growth aspects than its rivals.
Volatility and Risk
NetEase has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, NetEase’s rivals have a beta of 1.13, meaning that their average stock price is 13% more volatile than the S&P 500.
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 rivals beat NetEase on 8 of the 15 factors compared.
NetEase Company Profile
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.
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