NetEase Inc (NTES)vsSohu.Com Inc (SOHU)
NTES
NetEase Inc
$113.06
+0.82%
COMMUNICATION SERVICES · Cap: $74.82B
SOHU
Sohu.Com Inc
$15.84
-0.75%
COMMUNICATION SERVICES · Cap: $444.67M
Smart Verdict
WallStSmart Research — data-driven comparison
NetEase Inc generates 20430% more annual revenue ($112.63B vs $548.59M). NTES leads profitability with a 30.0% profit margin vs 22.7%. NTES appears more attractively valued with a PEG of 1.27. NTES earns a higher WallStSmart Score of 65/100 (C+).
NTES
Buy65
out of 100
Grade: C+
SOHU
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-129.0%
Fair Value
$51.75
Current Price
$113.06
$61.31 premium
Margin of Safety
+34.8%
Fair Value
$25.16
Current Price
$15.84
$9.32 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 30.2%
Generating 14.3B in free cash flow
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Attractively priced relative to earnings
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 23 of every $100 in revenue as profit
Areas to Watch
Trading at 15.5x book value
3.0% revenue growth
Earnings declined 29.4%
Smaller company, higher risk/reward
Expensive relative to growth rate
Revenue declined 26.7%
Earnings declined 75.7%
Comparative Analysis Report
WallStSmart ResearchBull 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 : SOHU
The strongest argument for SOHU centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 22.7% and operating margin at -17.7%.
Bear Case : NTES
The primary concerns for NTES are Price/Book, Revenue Growth, EPS Growth.
Bear Case : SOHU
The primary concerns for SOHU are Market Cap, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
NTES profiles as a value stock while SOHU is a declining play — different risk/reward profiles.
NTES carries more volatility with a beta of 0.86 — expect wider price swings.
NTES is growing revenue faster at 3.0% — 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 50/100), backed by strong 30.0% margins. SOHU offers better value entry with a 34.8% margin of safety. Both earn "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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