NetEase Inc (NTES)vsTake-Two Interactive Software Inc (TTWO)
NTES
NetEase Inc
$127.24
-2.65%
COMMUNICATION SERVICES · Cap: $81.52B
TTWO
Take-Two Interactive Software Inc
$254.99
+1.87%
COMMUNICATION SERVICES · Cap: $43.77B
Smart Verdict
WallStSmart Research — data-driven comparison
NetEase Inc generates 1618% more annual revenue ($114.39B vs $6.66B). NTES leads profitability with a 29.8% profit margin vs -4.5%. NTES appears more attractively valued with a PEG of 1.35. NTES earns a higher WallStSmart Score of 69/100 (B-).
NTES
Strong Buy69
out of 100
Grade: B-
TTWO
Avoid29
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.1%
Fair Value
$662.59
Current Price
$127.24
$535.35 discount
Intrinsic value data unavailable for TTWO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
No standout strengths identified
Areas to Watch
Trading at 16.8x book value
3.1% earnings growth
Trading at 13.5x book value
Operating margin of 2.3%
Expensive relative to growth rate
ROE of -8.5% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : TTWO
TTWO has a balanced fundamental profile.
Bear Case : NTES
The primary concerns for NTES are Price/Book, EPS Growth.
Bear Case : TTWO
The primary concerns for TTWO are Price/Book, Operating Margin, PEG Ratio.
Key Dynamics to Monitor
NTES profiles as a mature stock while TTWO is a turnaround play — different risk/reward profiles.
TTWO carries more volatility with a beta of 0.98 — expect wider price swings.
TTWO is growing revenue faster at 6.1% — 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 29/100), backed by strong 29.8% margins. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
Take-Two Interactive Software Inc
COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA
Take-Two Interactive Software, Inc. is an American video game holding company based in New York City. The company owns two major publishing labels, Rockstar Games and 2K, which operate internal game development studios.
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