NetEase Inc (NTES)vsSohu.Com Inc (SOHU)
NTES
NetEase Inc
$131.90
+1.76%
COMMUNICATION SERVICES · Cap: $81.54B
SOHU
Sohu.Com Inc
$13.76
+1.93%
COMMUNICATION SERVICES · Cap: $393.25M
Smart Verdict
WallStSmart Research — data-driven comparison
NetEase Inc generates 19289% more annual revenue ($114.39B vs $589.97M). SOHU leads profitability with a 35.2% profit margin vs 29.8%. NTES appears more attractively valued with a PEG of 1.37. NTES earns a higher WallStSmart Score of 69/100 (B-).
NTES
Strong Buy69
out of 100
Grade: B-
SOHU
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.0%
Fair Value
$657.54
Current Price
$131.90
$525.64 discount
Margin of Safety
+67.5%
Fair Value
$50.45
Current Price
$13.76
$36.69 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 41.4%
Conservative balance sheet, low leverage
Generating 13.1B in free cash flow
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 35 of every $100 in revenue as profit
Safe zone — low bankruptcy risk
Areas to Watch
Trading at 17.3x book value
3.1% earnings growth
4.2% revenue growth
Smaller company, higher risk/reward
Expensive relative to growth rate
Earnings declined 75.7%
Comparative Analysis Report
WallStSmart ResearchBull 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 1.37 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 35.2% and operating margin at -4.8%.
Bear Case : NTES
The primary concerns for NTES are Price/Book, EPS Growth.
Bear Case : SOHU
The primary concerns for SOHU are Revenue Growth, Market Cap, PEG Ratio.
Key Dynamics to Monitor
NTES profiles as a mature stock while SOHU is a value play — different risk/reward profiles.
NTES carries more volatility with a beta of 0.79 — expect wider price swings.
NTES is growing revenue faster at 6.1% — sustainability is the question.
Monitor ELECTRONIC GAMING & MULTIMEDIA industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NTES scores higher overall (69/100 vs 54/100), backed by strong 29.8% margins. SOHU offers better value entry with a 67.5% margin of safety. Both earn "Strong Buy" and "Buy" 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.
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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