Electronic Arts Inc (EA)vsNetEase Inc (NTES)
EA
Electronic Arts Inc
$202.34
+0.36%
COMMUNICATION SERVICES · Cap: $50.46B
NTES
NetEase Inc
$113.06
+0.82%
COMMUNICATION SERVICES · Cap: $74.82B
Smart Verdict
WallStSmart Research — data-driven comparison
NetEase Inc generates 1442% more annual revenue ($112.63B vs $7.31B). NTES leads profitability with a 30.0% profit margin vs 9.3%. NTES appears more attractively valued with a PEG of 1.27. NTES earns a higher WallStSmart Score of 65/100 (C+).
EA
Hold41
out of 100
Grade: D
NTES
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1018.0%
Fair Value
$18.09
Current Price
$202.34
$184.25 premium
Margin of Safety
-129.0%
Fair Value
$51.75
Current Price
$113.06
$61.31 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.8B in free cash flow
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 30.2%
Generating 14.3B in free cash flow
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Trading at 8.2x book value
1.0% revenue growth
Premium valuation, high expectations priced in
Trading at 15.5x book value
3.0% revenue growth
Earnings declined 29.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : EA
The strongest argument for EA centers on Market Cap, Free Cash Flow.
Bull Case : NTES
The strongest argument for NTES centers on Profit Margin, Operating Margin, Free Cash Flow. Profitability is solid with margins at 30.0% and operating margin at 30.2%. PEG of 1.27 suggests the stock is reasonably priced for its growth.
Bear Case : EA
The primary concerns for EA are PEG Ratio, Price/Book, Revenue Growth. A P/E of 75.8x leaves little room for execution misses.
Bear Case : NTES
The primary concerns for NTES are Price/Book, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
NTES carries more volatility with a beta of 0.86 — expect wider price swings.
NTES is growing revenue faster at 3.0% — sustainability is the question.
NTES generates stronger free cash flow (14.3B), providing more financial flexibility.
Monitor ELECTRONIC GAMING & MULTIMEDIA industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NTES scores higher overall (65/100 vs 41/100), backed by strong 30.0% 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.
Electronic Arts Inc
COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA
Electronic Arts Inc. (EA) is an American video game company headquartered in Redwood City, California. It is the second-largest gaming company in the Americas and Europe by revenue and market capitalization after Activision Blizzard and ahead of Take-Two Interactive, and Ubisoft as of May 2020.
Visit Website →NetEase Inc
COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · China
NetEase, Inc. offers online services that focus on gaming, communication, and commerce in the People's Republic of China and internationally. The company is headquartered in Hangzhou, the People's Republic of China.
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