WallStSmart

NetEase Inc (NTES)vsRoblox Corp (RBLX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NetEase Inc generates 2203% more annual revenue ($112.63B vs $4.89B). NTES leads profitability with a 30.0% profit margin vs -21.8%. NTES appears more attractively valued with a PEG of 1.27. NTES earns a higher WallStSmart Score of 65/100 (C+).

NTES

Buy

65

out of 100

Grade: C+

Growth: 4.0Profit: 9.0Value: 7.3Quality: 5.0

RBLX

Hold

36

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 4.0Quality: 3.0
Piotroski: 5/9Altman Z: -0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NTESSignificantly Overvalued (-129.0%)

Margin of Safety

-129.0%

Fair Value

$51.75

Current Price

$113.06

$61.31 premium

UndervaluedFair: $51.75Overvalued

Intrinsic value data unavailable for RBLX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NTES6 strengths · Avg: 9.3/10
Profit MarginProfitability
30.0%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
30.2%10/10

Strong operational efficiency at 30.2%

Free Cash FlowQuality
$14.34B10/10

Generating 14.3B in free cash flow

Market CapQuality
$74.82B9/10

Large-cap with strong market position

Return on EquityProfitability
22.6%9/10

Every $100 of equity generates 23 in profit

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

RBLX1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
43.2%10/10

Revenue surging 43.2% year-over-year

Areas to Watch

NTES3 concerns · Avg: 3.3/10
Price/BookValuation
15.5x4/10

Trading at 15.5x book value

Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

EPS GrowthGrowth
-29.4%2/10

Earnings declined 29.4%

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
101.2x2/10

Trading at 101.2x book value

Return on EquityProfitability
-3.7%2/10

ROE of -3.7% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : RBLX

The strongest argument for RBLX centers on Revenue Growth. Revenue growth of 43.2% demonstrates continued momentum.

Bear Case : NTES

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

Bear Case : RBLX

The primary concerns for RBLX are EPS Growth, PEG Ratio, Price/Book. Debt-to-equity of 4.15 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

RBLX carries more volatility with a beta of 1.63 — expect wider price swings.

RBLX is growing revenue faster at 43.2% — sustainability is the question.

NTES generates stronger free cash flow (14.3B), providing more financial flexibility.

Bottom Line

NTES scores higher overall (65/100 vs 36/100), 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.

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.

Visit Website →

Want to dig deeper into these stocks?