WallStSmart

Nebius Group N.V. (NBIS)vsNetEase Inc (NTES)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NetEase Inc generates 21158% more annual revenue ($112.63B vs $529.80M). NTES leads profitability with a 30.0% profit margin vs 19.2%. NBIS appears more attractively valued with a PEG of 0.63. NTES earns a higher WallStSmart Score of 65/100 (C+).

NBIS

Hold

47

out of 100

Grade: D+

Growth: 8.0Profit: 4.0Value: 6.0Quality: 5.5
Piotroski: 5/9Altman Z: 0.92

NTES

Buy

65

out of 100

Grade: C+

Growth: 4.0Profit: 9.0Value: 8.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NBISUndervalued (+15.4%)

Margin of Safety

+15.4%

Fair Value

$188.18

Current Price

$138.23

$49.95 discount

UndervaluedFair: $188.18Overvalued
NTESUndervalued (+83.3%)

Margin of Safety

+83.3%

Fair Value

$710.94

Current Price

$117.51

$593.43 discount

UndervaluedFair: $710.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NBIS2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
501.0%10/10

Revenue surging 501.0% year-over-year

PEG RatioValuation
0.638/10

Growing faster than its price suggests

NTES6 strengths · Avg: 9.3/10
Profit MarginProfitability
30.0%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
30.2%10/10

Strong operational efficiency at 30.2%

Free Cash FlowQuality
$14.34B10/10

Generating 14.3B in free cash flow

Market CapQuality
$74.99B9/10

Large-cap with strong market position

Return on EquityProfitability
22.6%9/10

Every $100 of equity generates 23 in profit

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Areas to Watch

NBIS4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
0.7%3/10

ROE of 0.7% — below average capital efficiency

Debt/EquityHealth
1.063/10

Elevated debt levels

P/E RatioValuation
1283.5x2/10

Premium valuation, high expectations priced in

NTES3 concerns · Avg: 3.3/10
Price/BookValuation
16.0x4/10

Trading at 16.0x book value

Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

EPS GrowthGrowth
-29.2%2/10

Earnings declined 29.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : NBIS

The strongest argument for NBIS centers on Revenue Growth, PEG Ratio. Profitability is solid with margins at 19.2% and operating margin at -103.0%. Revenue growth of 501.0% 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 1.26 suggests the stock is reasonably priced for its growth.

Bear Case : NBIS

The primary concerns for NBIS are EPS Growth, Return on Equity, Debt/Equity. A P/E of 1283.5x leaves little room for execution misses.

Bear Case : NTES

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

Key Dynamics to Monitor

NBIS profiles as a growth stock while NTES is a value play — different risk/reward profiles.

NBIS carries more volatility with a beta of 1.06 — expect wider price swings.

NBIS is growing revenue faster at 501.0% — sustainability is the question.

NTES generates stronger free cash flow (14.3B), providing more financial flexibility.

Bottom Line

NTES scores higher overall (65/100 vs 47/100), backed by strong 30.0% margins. NBIS offers better value entry with a 15.4% margin of safety. 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.

Nebius Group N.V.

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Nebius Group N.V. (Ticker: NBIS) is a forward-looking technology company specializing in advanced digital solutions designed to enhance client engagement and streamline operational efficiency across diverse sectors. By harnessing the power of cloud computing, artificial intelligence, and data analytics, Nebius equips businesses to effectively manage the complexities of the digital age. With a strong portfolio of intellectual property and meaningful strategic partnerships, the company is poised to capture significant growth opportunities in the dynamic technology landscape, positioning itself as an appealing investment choice for institutional investors seeking high-growth prospects in tech-driven markets.

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.

Want to dig deeper into these stocks?