WallStSmart

NetEase Inc (NTES)vsRoblox Corp (RBLX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NetEase Inc generates 2059% more annual revenue ($114.39B vs $5.30B). NTES leads profitability with a 29.8% profit margin vs -20.7%. NTES appears more attractively valued with a PEG of 1.35. NTES earns a higher WallStSmart Score of 69/100 (B-).

NTES

Strong Buy

69

out of 100

Grade: B-

Growth: 5.3Profit: 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: 3.5
Piotroski: 5/9Altman Z: -0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NTESUndervalued (+82.1%)

Margin of Safety

+82.1%

Fair Value

$662.59

Current Price

$127.24

$535.35 discount

UndervaluedFair: $662.59Overvalued
RBLXUndervalued (+8.6%)

Margin of Safety

+8.6%

Fair Value

$75.47

Current Price

$55.41

$20.06 discount

UndervaluedFair: $75.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NTES6 strengths · Avg: 9.7/10
Operating MarginProfitability
41.4%10/10

Strong operational efficiency at 41.4%

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$13.13B10/10

Generating 13.1B in free cash flow

Altman Z-ScoreHealth
4.5210/10

Safe zone — low bankruptcy risk

Market CapQuality
$81.52B9/10

Large-cap with strong market position

Return on EquityProfitability
20.7%9/10

Every $100 of equity generates 21 in profit

RBLX1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
39.3%10/10

Revenue surging 39.3% year-over-year

Areas to Watch

NTES2 concerns · Avg: 4.0/10
Price/BookValuation
16.8x4/10

Trading at 16.8x book value

EPS GrowthGrowth
3.1%4/10

3.1% earnings growth

RBLX4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Debt/EquityHealth
1.453/10

Elevated debt levels

PEG RatioValuation
8.182/10

Expensive relative to growth rate

Price/BookValuation
92.3x2/10

Trading at 92.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : NTES

The strongest argument for NTES centers on Operating Margin, Debt/Equity, Free Cash Flow. Profitability is solid with margins at 29.8% and operating margin at 41.4%. PEG of 1.35 suggests the stock is reasonably priced for its growth.

Bull Case : RBLX

The strongest argument for RBLX centers on Revenue Growth. Revenue growth of 39.3% 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, Debt/Equity, PEG Ratio.

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 1.44 — expect wider price swings.

RBLX is growing revenue faster at 39.3% — sustainability is the question.

NTES generates stronger free cash flow (13.1B), providing more financial flexibility.

Bottom Line

NTES scores higher overall (69/100 vs 36/100), backed by strong 29.8% 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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