NetEase (NASDAQ: NTES) is one of 185 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its rivals? We will compare NetEase to related companies based on the strength of its earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares NetEase and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NetEase $5.50 billion $1.67 billion 24.73
NetEase Competitors $2.79 billion $290.02 million 334.90

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.

Analyst Ratings

This is a breakdown of current recommendations 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 742 4612 7386 168 2.54

NetEase presently has a consensus target price of $322.77, indicating a potential downside of 9.79%. As a group, “IT Services & Consulting” companies have a potential downside of 5.13%. Given NetEase’s rivals stronger consensus rating and higher probable upside, analysts clearly believe NetEase has less favorable growth aspects than its rivals.

Dividends

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 1.5% and pay out 37.9% of their earnings in the form of a dividend.

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 -20.04% -252.06% -3.77%

Insider & Institutional Ownership

50.5% of NetEase shares are owned by institutional investors. Comparatively, 61.5% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 54.7% of NetEase shares are owned by insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

NetEase has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, NetEase’s rivals have a beta of 1.13, indicating that their average stock price is 13% more volatile than the S&P 500.

Summary

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.

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.