Baidu Inc (BIDU)vsSohu.Com Inc (SOHU)
BIDU
Baidu Inc
$126.53
+4.56%
COMMUNICATION SERVICES · Cap: $41.17B
SOHU
Sohu.Com Inc
$15.51
-0.26%
COMMUNICATION SERVICES · Cap: $467.52M
Smart Verdict
WallStSmart Research — data-driven comparison
Baidu Inc generates 21990% more annual revenue ($129.08B vs $584.33M). SOHU leads profitability with a 67.4% profit margin vs 4.3%. BIDU appears more attractively valued with a PEG of 0.72. SOHU earns a higher WallStSmart Score of 59/100 (C).
BIDU
Hold46
out of 100
Grade: D+
SOHU
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for BIDU.
Margin of Safety
+71.2%
Fair Value
$56.89
Current Price
$15.51
$41.38 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 36 in profit
Keeps 67 of every $100 in revenue as profit
Areas to Watch
ROE of 1.9% — below average capital efficiency
4.3% margin — thin
Operating margin of 4.5%
Weak financial health signals
Smaller company, higher risk/reward
Expensive relative to growth rate
Earnings declined 75.7%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : BIDU
The strongest argument for BIDU centers on Price/Book, PEG Ratio. PEG of 0.72 suggests the stock is reasonably priced for its growth.
Bull Case : SOHU
The strongest argument for SOHU centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 67.4% and operating margin at -20.4%.
Bear Case : BIDU
The primary concerns for BIDU are Return on Equity, Profit Margin, Operating Margin. A P/E of 70.3x leaves little room for execution misses. Thin 4.3% margins leave little buffer for downturns.
Bear Case : SOHU
The primary concerns for SOHU are Market Cap, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
BIDU profiles as a value stock while SOHU is a mature play — different risk/reward profiles.
SOHU carries more volatility with a beta of 0.53 — expect wider price swings.
SOHU is growing revenue faster at 5.6% — sustainability is the question.
BIDU generates stronger free cash flow (88M), providing more financial flexibility.
Bottom Line
SOHU scores higher overall (59/100 vs 46/100), backed by strong 67.4% 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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