GRAVITY Co., Ltd. (GRVY) vs NetEase, Inc. (NTES)

GRAVITY Co., Ltd. and NetEase, Inc. are both Electronic Gaming & Multimedia companies. NetEase, Inc. is the larger, with a market value of $73.5B against $469.5M — 156.6× the size. GRAVITY Co., Ltd. trades at the lower P/E: 8.2× against 15.7×. NetEase, Inc. grew revenue faster over the last twelve months: 13.6% against −2.43%. NetEase, Inc. has the higher net margin (28.0% vs 15.0%) and the higher return on invested capital (605.2% vs 130.5%). Across the 22 metrics below, GRAVITY Co., Ltd. leads on 11 and NetEase, Inc. on 11.

Valuation

Metric GRVY NTES Electronic Gaming & Multimedia median
P/E 8.16 15.74 7.09
P/S 1.19 4.32 1.09
P/B 1.02 2.93 1.02
Price to free cash flow 1.72 10.09 6.55
EV/EBITDA 0.64 7.76 3.29
EV/Sales 0.10 2.88 0.84
Earnings yield 12.25% 6.35% (3.08%)
Free cash flow yield 58.13% 9.91% 0.00%

Profitability

Metric GRVY NTES Electronic Gaming & Multimedia median
Gross margin 33.70% 67.15% 70.26%
Operating margin 15.89% 35.28% (8.19%)
Net margin 14.99% 27.96% (9.89%)
Free cash flow margin 0.00% 42.84% 0.00%
Return on equity 12.99% 22.94% 0.00%
Return on assets 10.94% 15.11% (1.43%)
Return on invested capital 130.48% 605.16% 0.00%

Growth

Metric GRVY NTES Electronic Gaming & Multimedia median
Revenue growth (TTM) (2.43%) 13.58% 13.58%
EPS growth (last fiscal year) (21.40%) 19.24% —
Revenue growth, 5-year CAGR 3.86% 7.36% (2.72%)
Net income growth, 5-year CAGR (1.20%) 21.16% 0.00%

Health

Metric GRVY NTES Electronic Gaming & Multimedia median
Debt to equity 0.00 0.07 0.00
Current ratio 7.20 3.45 1.61
Net debt to EBITDA (7.06) (4.22) 0.07

Dividend

Metric GRVY NTES Electronic Gaming & Multimedia median
Dividend yield — 1.82% —
Payout ratio 0.00 0.28 0.00

Size

Metric GRVY NTES Electronic Gaming & Multimedia median
Market cap 469.47m 73.51b 53.60m

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