WallStSmart

NetEase Inc (NTES)vsTake-Two Interactive Software Inc (TTWO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NetEase Inc generates 1644% more annual revenue ($116.60B vs $6.69B). NTES leads profitability with a 27.9% profit margin vs -4.8%. NTES appears more attractively valued with a PEG of 1.41. NTES earns a higher WallStSmart Score of 67/100 (B-).

NTES

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 9.0Value: 8.0Quality: 9.0
Piotroski: 5/9Altman Z: 4.52

TTWO

Avoid

27

out of 100

Grade: F

Growth: 4.0Profit: 2.5Value: 4.0Quality: 5.0
Piotroski: 6/9Altman Z: 0.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NTESUndervalued (+82.2%)

Margin of Safety

+82.2%

Fair Value

$664.76

Current Price

$122.69

$542.07 discount

UndervaluedFair: $664.76Overvalued

Intrinsic value data unavailable for TTWO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NTES6 strengths · Avg: 9.3/10
Operating MarginProfitability
40.2%10/10

Strong operational efficiency at 40.2%

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5210/10

Safe zone — low bankruptcy risk

Market CapQuality
$82.06B9/10

Large-cap with strong market position

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

TTWO0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

NTES2 concerns · Avg: 3.0/10
Price/BookValuation
15.8x4/10

Trading at 15.8x book value

EPS GrowthGrowth
-18.7%2/10

Earnings declined 18.7%

TTWO4 concerns · Avg: 3.3/10
Price/BookValuation
12.3x4/10

Trading at 12.3x book value

Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

Operating MarginProfitability
0.5%3/10

Operating margin of 0.5%

PEG RatioValuation
3.192/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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 1.41 suggests the stock is reasonably priced for its growth.

Bull Case : TTWO

TTWO has a balanced fundamental profile.

Bear Case : NTES

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

Bear Case : TTWO

The primary concerns for TTWO are Price/Book, Revenue Growth, Operating Margin.

Key Dynamics to Monitor

NTES profiles as a mature stock while TTWO is a turnaround play — different risk/reward profiles.

TTWO carries more volatility with a beta of 0.98 — expect wider price swings.

NTES is growing revenue faster at 7.9% — sustainability is the question.

NTES generates stronger free cash flow (10.0B), providing more financial flexibility.

Bottom Line

NTES scores higher overall (67/100 vs 27/100), backed by strong 27.9% margins. Both earn "Strong Buy" and "Avoid" 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.

Take-Two Interactive Software Inc

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA

Take-Two Interactive Software, Inc. is an American video game holding company based in New York City. The company owns two major publishing labels, Rockstar Games and 2K, which operate internal game development studios.

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