WallStSmart

Sea Ltd (SE)vsYum China Holdings Inc (YUMC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sea Ltd generates 94% more annual revenue ($22.94B vs $11.80B). YUMC leads profitability with a 7.9% profit margin vs 6.9%. SE appears more attractively valued with a PEG of 0.55. SE earns a higher WallStSmart Score of 70/100 (B-).

SE

Strong Buy

70

out of 100

Grade: B-

Growth: 10.0Profit: 6.0Value: 6.0Quality: 5.5
Piotroski: 6/9

YUMC

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 7.3Quality: 6.0
Piotroski: 5/9Altman Z: 2.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SEUndervalued (+2.9%)

Margin of Safety

+2.9%

Fair Value

$117.94

Current Price

$78.16

$39.78 discount

UndervaluedFair: $117.94Overvalued
YUMCUndervalued (+52.2%)

Margin of Safety

+52.2%

Fair Value

$117.47

Current Price

$49.59

$67.88 discount

UndervaluedFair: $117.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SE4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
38.4%10/10

Revenue surging 38.4% year-over-year

EPS GrowthGrowth
58.5%10/10

Earnings expanding 58.5% YoY

PEG RatioValuation
0.558/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.04B8/10

Generating 1.0B in free cash flow

YUMC1 strengths · Avg: 8.0/10
EPS GrowthGrowth
34.3%8/10

Earnings expanding 34.3% YoY

Areas to Watch

SE2 concerns · Avg: 3.5/10
P/E RatioValuation
31.0x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

YUMC2 concerns · Avg: 2.5/10
Profit MarginProfitability
7.9%3/10

7.9% margin — thin

Free Cash FlowQuality
$-112.93M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : SE

The strongest argument for SE centers on Revenue Growth, EPS Growth, PEG Ratio. Revenue growth of 38.4% demonstrates continued momentum. PEG of 0.55 suggests the stock is reasonably priced for its growth.

Bull Case : YUMC

The strongest argument for YUMC centers on EPS Growth. PEG of 1.27 suggests the stock is reasonably priced for its growth.

Bear Case : SE

The primary concerns for SE are P/E Ratio, Profit Margin.

Bear Case : YUMC

The primary concerns for YUMC are Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

SE profiles as a hypergrowth stock while YUMC is a value play — different risk/reward profiles.

SE carries more volatility with a beta of 1.63 — expect wider price swings.

SE is growing revenue faster at 38.4% — sustainability is the question.

SE generates stronger free cash flow (1.0B), providing more financial flexibility.

Bottom Line

SE scores higher overall (70/100 vs 64/100) and 38.4% revenue growth. YUMC offers better value entry with a 52.2% 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.

Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

Yum China Holdings Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum China Holdings, Inc. owns, operates and franchises restaurants in China. The company is headquartered in Shanghai, China.

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