NetEase Inc (NTES)vsSohu.Com Inc (SOHU)
NTES
NetEase Inc
$115.61
-0.02%
COMMUNICATION SERVICES · Cap: $76.38B
SOHU
Sohu.Com Inc
$13.68
+1.30%
COMMUNICATION SERVICES · Cap: $413.40M
Smart Verdict
WallStSmart Research — data-driven comparison
NetEase Inc generates 19358% more annual revenue ($116.60B vs $599.25M). SOHU leads profitability with a 38.2% profit margin vs 27.9%. NTES appears more attractively valued with a PEG of 1.19. NTES earns a higher WallStSmart Score of 67/100 (B-).
NTES
Strong Buy67
out of 100
Grade: B-
SOHU
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.1%
Fair Value
$662.02
Current Price
$115.61
$546.41 discount
Margin of Safety
+67.5%
Fair Value
$50.53
Current Price
$13.68
$36.86 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 40.2%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 38 of every $100 in revenue as profit
Safe zone — low bankruptcy risk
Areas to Watch
Trading at 14.9x book value
Earnings declined 18.7%
Smaller company, higher risk/reward
Expensive relative to growth rate
Earnings declined 75.7%
Operating margin of -13.5%
Comparative Analysis Report
WallStSmart ResearchBull 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 1.19 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 38.2% and operating margin at -13.5%.
Bear Case : NTES
The primary concerns for NTES are Price/Book, EPS Growth.
Bear Case : SOHU
The primary concerns for SOHU are Market Cap, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
NTES carries more volatility with a beta of 0.79 — expect wider price swings.
NTES is growing revenue faster at 7.9% — sustainability is the question.
Monitor ELECTRONIC GAMING & MULTIMEDIA industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NTES scores higher overall (67/100 vs 55/100), backed by strong 27.9% 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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