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 $80.6B against $462.0M — 174.5× the size. GRAVITY Co., Ltd. trades at the lower P/E: 8.0× against 16.9×. 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 7.97 16.92 7.53
P/S 1.20 4.74 0.61
P/B 1.02 3.21 0.67
Price to free cash flow 5.20 11.08 5.26
EV/EBITDA 0.65 8.90 2.12
EV/Sales 0.10 3.31 0.58
Earnings yield 12.54% 5.91% (1.85%)
Free cash flow yield 19.23% 9.03% 0.38%

Profitability

Metric GRVY NTES Electronic Gaming & Multimedia median
Gross margin 33.70% 67.15% 67.15%
Operating margin 15.89% 35.28% (12.93%)
Net margin 14.99% 27.96% (2.40%)
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% (1.71%)
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% 9.23%
EPS growth (last fiscal year) (21.40%) 19.24% (2.28%)
Revenue growth, 5-year CAGR 3.86% 7.36% (1.32%)
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 1.57
Net debt to EBITDA (7.06) (4.22) 0.35

Dividend

Metric GRVY NTES Electronic Gaming & Multimedia median
Dividend yield — 2.31% —
Payout ratio — 0.39 —

Size

Metric GRVY NTES Electronic Gaming & Multimedia median
Market cap 462.04m 80.61b 80.62m

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