Electronic Arts Inc (EA)vsNetEase Inc (NTES)
EA
Electronic Arts Inc
$205.21
-0.20%
COMMUNICATION SERVICES · Cap: $51.47B
NTES
NetEase Inc
$127.24
-2.65%
COMMUNICATION SERVICES · Cap: $81.52B
Smart Verdict
WallStSmart Research — data-driven comparison
NetEase Inc generates 1419% more annual revenue ($114.39B vs $7.53B). NTES leads profitability with a 29.8% profit margin vs 11.8%. EA appears more attractively valued with a PEG of 1.27. NTES earns a higher WallStSmart Score of 69/100 (B-).
EA
Buy65
out of 100
Grade: C+
NTES
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-88.7%
Fair Value
$107.18
Current Price
$205.21
$98.03 premium
Margin of Safety
+82.1%
Fair Value
$662.59
Current Price
$127.24
$535.35 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 85.3% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Strong operational efficiency at 24.0%
Strong operational efficiency at 41.4%
Conservative balance sheet, low leverage
Generating 13.1B in free cash flow
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Areas to Watch
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 16.8x book value
3.1% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull Case : EA
The strongest argument for EA centers on EPS Growth, Market Cap, Debt/Equity. Revenue growth of 11.9% demonstrates continued momentum. PEG of 1.27 suggests the stock is reasonably priced for its growth.
Bull Case : NTES
The strongest argument for NTES centers on Operating Margin, Debt/Equity, Free Cash Flow. Profitability is solid with margins at 29.8% and operating margin at 41.4%. PEG of 1.35 suggests the stock is reasonably priced for its growth.
Bear Case : EA
The primary concerns for EA are Piotroski F-Score, P/E Ratio. A P/E of 58.5x leaves little room for execution misses.
Bear Case : NTES
The primary concerns for NTES are Price/Book, EPS Growth.
Key Dynamics to Monitor
EA profiles as a value stock while NTES is a mature play — different risk/reward profiles.
NTES carries more volatility with a beta of 0.79 — expect wider price swings.
EA is growing revenue faster at 11.9% — sustainability is the question.
NTES generates stronger free cash flow (13.1B), providing more financial flexibility.
Bottom Line
NTES scores higher overall (69/100 vs 65/100), backed by strong 29.8% margins. Both earn "Strong 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.
Electronic Arts Inc
COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA
Electronic Arts Inc. (EA) is an American video game company headquartered in Redwood City, California. It is the second-largest gaming company in the Americas and Europe by revenue and market capitalization after Activision Blizzard and ahead of Take-Two Interactive, and Ubisoft as of May 2020.
Visit Website →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.
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