Alphabet Inc Class A (GOOGL)vsNetEase Inc (NTES)
GOOGL
Alphabet Inc Class A
$349.94
+0.05%
COMMUNICATION SERVICES · Cap: $4.66T
NTES
NetEase Inc
$117.51
+3.54%
COMMUNICATION SERVICES · Cap: $70.56B
Smart Verdict
WallStSmart Research — data-driven comparison
Alphabet Inc Class A generates 258% more annual revenue ($402.84B vs $112.63B). GOOGL leads profitability with a 32.8% profit margin vs 30.0%. NTES appears more attractively valued with a PEG of 1.23. GOOGL earns a higher WallStSmart Score of 70/100 (B).
GOOGL
Strong Buy70
out of 100
Grade: B
NTES
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.8%
Fair Value
$618.76
Current Price
$349.94
$268.82 discount
Margin of Safety
+83.4%
Fair Value
$713.88
Current Price
$117.51
$596.37 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 31.6%
Generating 10.1B in free cash flow
Safe zone — low bankruptcy risk
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
Areas to Watch
Moderate valuation
Trading at 10.2x book value
Expensive relative to growth rate
Trading at 16.0x book value
3.0% revenue growth
Earnings declined 29.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : GOOGL
The strongest argument for GOOGL centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 32.8% and operating margin at 31.6%. Revenue growth of 18.0% demonstrates continued momentum.
Bull 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 1.23 suggests the stock is reasonably priced for its growth.
Bear Case : GOOGL
The primary concerns for GOOGL are P/E Ratio, Price/Book, PEG Ratio.
Bear Case : NTES
The primary concerns for NTES are Price/Book, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
GOOGL profiles as a growth stock while NTES is a value play — different risk/reward profiles.
GOOGL carries more volatility with a beta of 1.13 — expect wider price swings.
GOOGL is growing revenue faster at 18.0% — sustainability is the question.
NTES generates stronger free cash flow (14.3B), providing more financial flexibility.
Bottom Line
GOOGL scores higher overall (70/100 vs 65/100), backed by strong 32.8% margins and 18.0% revenue growth. NTES offers better value entry with a 83.4% margin of safety. 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.
Alphabet Inc Class A
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
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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