WallStSmart

Baidu Inc (BIDU)vsSohu.Com Inc (SOHU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Baidu Inc generates 21146% more annual revenue ($127.31B vs $599.25M). SOHU leads profitability with a 38.2% profit margin vs -2.9%. BIDU appears more attractively valued with a PEG of 0.85. SOHU earns a higher WallStSmart Score of 55/100 (C-).

BIDU

Hold

47

out of 100

Grade: D+

Growth: 2.7Profit: 3.5Value: 6.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.18

SOHU

Buy

55

out of 100

Grade: C-

Growth: 3.3Profit: 5.5Value: 7.3Quality: 7.8
Piotroski: 5/9Altman Z: 3.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BIDU.

SOHUUndervalued (+67.5%)

Margin of Safety

+67.5%

Fair Value

$50.53

Current Price

$13.68

$36.86 discount

UndervaluedFair: $50.53Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BIDU2 strengths · Avg: 9.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

PEG RatioValuation
0.858/10

Growing faster than its price suggests

SOHU4 strengths · Avg: 10.0/10
P/E RatioValuation
1.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
38.2%10/10

Keeps 38 of every $100 in revenue as profit

Altman Z-ScoreHealth
3.3310/10

Safe zone — low bankruptcy risk

Areas to Watch

BIDU4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-1.4%2/10

ROE of -1.4% — below average capital efficiency

Revenue GrowthGrowth
-4.2%2/10

Revenue declined 4.2%

EPS GrowthGrowth
-71.7%2/10

Earnings declined 71.7%

SOHU4 concerns · Avg: 2.0/10
Market CapQuality
$413.40M3/10

Smaller company, higher risk/reward

PEG RatioValuation
21.442/10

Expensive relative to growth rate

EPS GrowthGrowth
-75.7%2/10

Earnings declined 75.7%

Operating MarginProfitability
-13.5%1/10

Operating margin of -13.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : BIDU

The strongest argument for BIDU centers on Price/Book, PEG Ratio. PEG of 0.85 suggests the stock is reasonably priced for its growth.

Bull Case : SOHU

The strongest argument for SOHU centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 38.2% and operating margin at -13.5%.

Bear Case : BIDU

The primary concerns for BIDU are Piotroski F-Score, Return on Equity, Revenue Growth.

Bear Case : SOHU

The primary concerns for SOHU are Market Cap, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

BIDU profiles as a turnaround stock while SOHU is a mature play — different risk/reward profiles.

BIDU carries more volatility with a beta of 0.57 — expect wider price swings.

SOHU is growing revenue faster at 7.3% — sustainability is the question.

Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SOHU scores higher overall (55/100 vs 47/100), backed by strong 38.2% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Baidu Inc

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · China

Baidu, Inc. provides Internet search services primarily in China. The company is headquartered in Beijing, China.

Sohu.Com Inc

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · China

Sohu.com Limited provides online media, games and search products and services on PC and mobile devices in China. The company is headquartered in Beijing, China.

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