WallStSmart

Sohu.Com Inc (SOHU)vsTake-Two Interactive Software Inc (TTWO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Take-Two Interactive Software Inc generates 1096% more annual revenue ($6.56B vs $548.59M). SOHU leads profitability with a 22.7% profit margin vs -60.5%. TTWO appears more attractively valued with a PEG of 2.13. SOHU earns a higher WallStSmart Score of 50/100 (C-).

SOHU

Buy

50

out of 100

Grade: C-

Growth: 2.0Profit: 4.5Value: 7.3Quality: 5.0

TTWO

Avoid

34

out of 100

Grade: F

Growth: 6.0Profit: 2.0Value: 6.7Quality: 4.3
Piotroski: 4/9Altman Z: -1.94
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SOHUUndervalued (+34.8%)

Margin of Safety

+34.8%

Fair Value

$25.16

Current Price

$15.84

$9.32 discount

UndervaluedFair: $25.16Overvalued

Intrinsic value data unavailable for TTWO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SOHU3 strengths · Avg: 9.7/10
P/E RatioValuation
4.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.7%9/10

Keeps 23 of every $100 in revenue as profit

TTWO1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
24.9%8/10

Revenue surging 24.9% year-over-year

Areas to Watch

SOHU4 concerns · Avg: 2.3/10
Market CapQuality
$444.67M3/10

Smaller company, higher risk/reward

PEG RatioValuation
21.442/10

Expensive relative to growth rate

Revenue GrowthGrowth
-26.7%2/10

Revenue declined 26.7%

EPS GrowthGrowth
-75.7%2/10

Earnings declined 75.7%

TTWO4 concerns · Avg: 3.0/10
PEG RatioValuation
2.134/10

Expensive relative to growth rate

Price/BookValuation
10.2x4/10

Trading at 10.2x book value

Return on EquityProfitability
-86.2%2/10

ROE of -86.2% — below average capital efficiency

EPS GrowthGrowth
-49.7%2/10

Earnings declined 49.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : SOHU

The strongest argument for SOHU centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 22.7% and operating margin at -17.7%.

Bull Case : TTWO

The strongest argument for TTWO centers on Revenue Growth. Revenue growth of 24.9% demonstrates continued momentum.

Bear Case : SOHU

The primary concerns for SOHU are Market Cap, PEG Ratio, Revenue Growth.

Bear Case : TTWO

The primary concerns for TTWO are PEG Ratio, Price/Book, Return on Equity.

Key Dynamics to Monitor

SOHU profiles as a declining stock while TTWO is a growth play — different risk/reward profiles.

TTWO carries more volatility with a beta of 0.96 — expect wider price swings.

TTWO is growing revenue faster at 24.9% — sustainability is the question.

TTWO generates stronger free cash flow (248M), providing more financial flexibility.

Bottom Line

SOHU scores higher overall (50/100 vs 34/100), backed by strong 22.7% margins. Both earn "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.

Sohu.Com Inc

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · China

Sohu.com Limited provides online media, games and search products and services on PC and mobile devices in China. The company is headquartered in Beijing, 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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