NetEase Inc (NTES)vsTake-Two Interactive Software Inc (TTWO)
NTES
NetEase Inc
$124.24
+3.88%
COMMUNICATION SERVICES · Cap: $77.58B
TTWO
Take-Two Interactive Software Inc
$208.82
-2.16%
COMMUNICATION SERVICES · Cap: $37.91B
Smart Verdict
WallStSmart Research — data-driven comparison
NetEase Inc generates 1644% more annual revenue ($116.60B vs $6.69B). NTES leads profitability with a 27.9% profit margin vs -4.8%. NTES appears more attractively valued with a PEG of 1.16. NTES earns a higher WallStSmart Score of 67/100 (B-).
NTES
Strong Buy67
out of 100
Grade: B-
TTWO
Avoid29
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.9%
Fair Value
$653.77
Current Price
$124.24
$529.53 discount
Intrinsic value data unavailable for TTWO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
No standout strengths identified
Areas to Watch
Trading at 16.0x book value
Earnings declined 18.7%
Trading at 10.8x book value
2.0% revenue growth
Operating margin of 0.5%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 1.16 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, Revenue Growth, Operating Margin.
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 0.97 — expect wider price swings.
NTES is growing revenue faster at 7.9% — sustainability is the question.
NTES generates stronger free cash flow (10.0B), providing more financial flexibility.
Bottom Line
NTES scores higher overall (67/100 vs 29/100), backed by strong 27.9% 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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