NetEase Inc (NTES)vsTake-Two Interactive Software Inc (TTWO)
NTES
NetEase Inc
$113.06
+0.82%
COMMUNICATION SERVICES · Cap: $74.82B
TTWO
Take-Two Interactive Software Inc
$193.05
+0.88%
COMMUNICATION SERVICES · Cap: $35.44B
Smart Verdict
WallStSmart Research — data-driven comparison
NetEase Inc generates 1617% more annual revenue ($112.63B vs $6.56B). NTES leads profitability with a 30.0% profit margin vs -60.5%. 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+
TTWO
Avoid34
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-129.0%
Fair Value
$51.75
Current Price
$113.06
$61.31 premium
Intrinsic value data unavailable for TTWO.
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
Revenue surging 24.9% year-over-year
Areas to Watch
Trading at 15.5x book value
3.0% revenue growth
Earnings declined 29.4%
Expensive relative to growth rate
Trading at 10.2x book value
ROE of -86.2% — below average capital efficiency
Earnings declined 49.7%
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 : TTWO
The strongest argument for TTWO centers on Revenue Growth. Revenue growth of 24.9% demonstrates continued momentum.
Bear Case : NTES
The primary concerns for NTES are Price/Book, Revenue Growth, EPS Growth.
Bear Case : TTWO
The primary concerns for TTWO are PEG Ratio, Price/Book, Return on Equity.
Key Dynamics to Monitor
NTES profiles as a value stock while TTWO is a growth play — different risk/reward profiles.
TTWO carries more volatility with a beta of 0.96 — expect wider price swings.
TTWO is growing revenue faster at 24.9% — 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 34/100), backed by strong 30.0% margins. Both earn "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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