WallStSmart

Gravity Co Ltd (GRVY)vsNetEase Inc (NTES)

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Smart Verdict

WallStSmart Research — data-driven comparison

Gravity Co Ltd generates 382% more annual revenue ($562.28B vs $116.60B). NTES leads profitability with a 27.9% profit margin vs 15.3%. GRVY trades at a lower P/E of 8.1x. NTES earns a higher WallStSmart Score of 67/100 (B-).

GRVY

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 6.7Quality: 9.0
Piotroski: 4/9Altman Z: 6.86

NTES

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 9.0Value: 8.0Quality: 9.0
Piotroski: 5/9Altman Z: 4.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for GRVY.

NTESUndervalued (+82.1%)

Margin of Safety

+82.1%

Fair Value

$662.02

Current Price

$115.61

$546.41 discount

UndervaluedFair: $662.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GRVY5 strengths · Avg: 10.0/10
P/E RatioValuation
8.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
83.8%10/10

Earnings expanding 83.8% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.8610/10

Safe zone — low bankruptcy risk

NTES6 strengths · Avg: 9.3/10
Operating MarginProfitability
40.2%10/10

Strong operational efficiency at 40.2%

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5210/10

Safe zone — low bankruptcy risk

Market CapQuality
$76.38B9/10

Large-cap with strong market position

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Areas to Watch

GRVY2 concerns · Avg: 2.5/10
Market CapQuality
$506.57M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-4.6%2/10

Revenue declined 4.6%

NTES2 concerns · Avg: 3.0/10
Price/BookValuation
14.9x4/10

Trading at 14.9x book value

EPS GrowthGrowth
-18.7%2/10

Earnings declined 18.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : GRVY

The strongest argument for GRVY centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 15.3% and operating margin at 15.1%.

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 1.19 suggests the stock is reasonably priced for its growth.

Bear Case : GRVY

The primary concerns for GRVY are Market Cap, Revenue Growth.

Bear Case : NTES

The primary concerns for NTES are Price/Book, EPS Growth.

Key Dynamics to Monitor

GRVY profiles as a declining stock while NTES is a mature play — different risk/reward profiles.

GRVY carries more volatility with a beta of 1.02 — expect wider price swings.

NTES is growing revenue faster at 7.9% — sustainability is the question.

Monitor ELECTRONIC GAMING & MULTIMEDIA industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NTES scores higher overall (67/100 vs 61/100), backed by strong 27.9% 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.

Gravity Co Ltd

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA

Gravity Co., Ltd. develops, publishes, and distributes online games primarily in South Korea, Taiwan, Thailand, the Philippines, and internationally. The company is headquartered in Seoul, South Korea.

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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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