WallStSmart

NetEase Inc (NTES)vsRoblox Corp (RBLX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NetEase Inc generates 1951% more annual revenue ($116.60B vs $5.69B). NTES leads profitability with a 27.9% profit margin vs -17.6%. NTES appears more attractively valued with a PEG of 1.41. NTES earns a higher WallStSmart Score of 67/100 (B-).

NTES

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 9.0Value: 8.0Quality: 9.0
Piotroski: 5/9Altman Z: 4.52

RBLX

Hold

36

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 4.3Quality: 3.0
Piotroski: 5/9Altman Z: -0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NTESUndervalued (+82.2%)

Margin of Safety

+82.2%

Fair Value

$664.76

Current Price

$122.69

$542.07 discount

UndervaluedFair: $664.76Overvalued
RBLXUndervalued (+13.0%)

Margin of Safety

+13.0%

Fair Value

$79.33

Current Price

$38.15

$41.18 discount

UndervaluedFair: $79.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NTES6 strengths · Avg: 9.3/10
Operating MarginProfitability
40.2%10/10

Strong operational efficiency at 40.2%

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5210/10

Safe zone — low bankruptcy risk

Market CapQuality
$82.06B9/10

Large-cap with strong market position

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

RBLX1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
35.9%10/10

Revenue surging 35.9% year-over-year

Areas to Watch

NTES2 concerns · Avg: 3.0/10
Price/BookValuation
15.8x4/10

Trading at 15.8x book value

EPS GrowthGrowth
-18.7%2/10

Earnings declined 18.7%

RBLX4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

PEG RatioValuation
8.182/10

Expensive relative to growth rate

Price/BookValuation
181.7x2/10

Trading at 181.7x book value

Return on EquityProfitability
-658.3%2/10

ROE of -658.3% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : NTES

The strongest argument for NTES centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 27.9% and operating margin at 40.2%. PEG of 1.41 suggests the stock is reasonably priced for its growth.

Bull Case : RBLX

The strongest argument for RBLX centers on Revenue Growth. Revenue growth of 35.9% demonstrates continued momentum.

Bear Case : NTES

The primary concerns for NTES are Price/Book, EPS Growth.

Bear Case : RBLX

The primary concerns for RBLX are EPS Growth, PEG Ratio, Price/Book. Debt-to-equity of 12.08 is elevated, increasing financial risk.

Key Dynamics to Monitor

NTES profiles as a mature stock while RBLX is a hypergrowth play — different risk/reward profiles.

RBLX carries more volatility with a beta of 1.46 — expect wider price swings.

RBLX is growing revenue faster at 35.9% — sustainability is the question.

NTES generates stronger free cash flow (10.0B), providing more financial flexibility.

Bottom Line

NTES scores higher overall (67/100 vs 36/100), backed by strong 27.9% margins. Both earn "Strong 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.

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.

Roblox Corp

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA

Roblox Corporation develops and operates an online entertainment platform. The company is headquartered in San Mateo, California.

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