Electronic Arts Inc (EA)vsNetEase Inc (NTES)
EA
Electronic Arts Inc
$209.70
-0.10%
COMMUNICATION SERVICES · Cap: $52.92B
NTES
NetEase Inc
$122.69
-0.60%
COMMUNICATION SERVICES · Cap: $82.06B
Smart Verdict
WallStSmart Research — data-driven comparison
NetEase Inc generates 1386% more annual revenue ($116.60B vs $7.85B). NTES leads profitability with a 27.9% profit margin vs 13.8%. EA appears more attractively valued with a PEG of 1.30. NTES earns a higher WallStSmart Score of 67/100 (B-).
EA
Strong Buy67
out of 100
Grade: B-
NTES
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-80.5%
Fair Value
$112.02
Current Price
$209.70
$97.68 premium
Margin of Safety
+82.2%
Fair Value
$664.76
Current Price
$122.69
$542.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 97.5% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Strong operational efficiency at 25.8%
18.9% revenue growth
Strong operational efficiency at 40.2%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Trading at 15.8x book value
Earnings declined 18.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : EA
The strongest argument for EA centers on EPS Growth, Market Cap, Debt/Equity. Revenue growth of 18.9% demonstrates continued momentum. PEG of 1.30 suggests the stock is reasonably priced for its growth.
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.
Bear Case : EA
The primary concerns for EA are Piotroski F-Score, P/E Ratio, Free Cash Flow. A P/E of 59.9x 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 growth stock while NTES is a mature play — different risk/reward profiles.
NTES carries more volatility with a beta of 0.80 — expect wider price swings.
EA is growing revenue faster at 18.9% — sustainability is the question.
NTES generates stronger free cash flow (10.0B), providing more financial flexibility.
Bottom Line
EA scores higher overall (67/100 vs 67/100) and 18.9% revenue growth. NTES offers better value entry with a 82.2% margin of safety. Both earn "Strong Buy" and "Strong 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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