WallStSmart

Baidu Inc (BIDU)vsSohu.Com Inc (SOHU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Baidu Inc generates 21715% more annual revenue ($128.70B vs $589.97M). SOHU leads profitability with a 35.2% profit margin vs 1.0%. BIDU appears more attractively valued with a PEG of 0.68. SOHU earns a higher WallStSmart Score of 54/100 (C-).

BIDU

Hold

47

out of 100

Grade: D+

Growth: 2.7Profit: 4.5Value: 6.0Quality: 6.5
Piotroski: 3/9Altman Z: 2.18

SOHU

Buy

54

out of 100

Grade: C-

Growth: 2.7Profit: 5.5Value: 7.3Quality: 7.3
Piotroski: 5/9Altman Z: 3.31
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BIDU.

SOHUUndervalued (+68.0%)

Margin of Safety

+68.0%

Fair Value

$51.19

Current Price

$13.24

$37.95 discount

UndervaluedFair: $51.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BIDU3 strengths · Avg: 8.7/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.688/10

Growing faster than its price suggests

Free Cash FlowQuality
$2.67B8/10

Generating 2.7B in free cash flow

SOHU4 strengths · Avg: 10.0/10
P/E RatioValuation
1.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
35.2%10/10

Keeps 35 of every $100 in revenue as profit

Altman Z-ScoreHealth
3.3110/10

Safe zone — low bankruptcy risk

Areas to Watch

BIDU4 concerns · Avg: 2.8/10
Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

Profit MarginProfitability
1.0%3/10

1.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-1.2%2/10

Revenue declined 1.2%

SOHU4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Market CapQuality
$410.99M3/10

Smaller company, higher risk/reward

PEG RatioValuation
21.442/10

Expensive relative to growth rate

EPS GrowthGrowth
-75.7%2/10

Earnings declined 75.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : BIDU

The strongest argument for BIDU centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.68 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 : BIDU

The primary concerns for BIDU are Return on Equity, Profit Margin, Piotroski F-Score. Thin 1.0% margins leave little buffer for downturns.

Bear Case : SOHU

The primary concerns for SOHU are Revenue Growth, Market Cap, PEG Ratio.

Key Dynamics to Monitor

BIDU carries more volatility with a beta of 0.53 — expect wider price swings.

SOHU is growing revenue faster at 4.2% — sustainability is the question.

Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SOHU scores higher overall (54/100 vs 47/100), backed by strong 35.2% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Baidu Inc

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · China

Baidu, Inc. provides Internet search services primarily in China. The company is headquartered in Beijing, 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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