NetEase, Inc. (NTES) vs Roblox Corporation (RBLX)

NetEase, Inc. and Roblox Corporation are both Electronic Gaming & Multimedia companies. NetEase, Inc. is the larger, with a market value of $73.5B against $34.9B — 2.1× the size. Roblox Corporation has negative trailing earnings, so its P/E is not meaningful; NetEase, Inc. trades at 15.7×. Roblox Corporation grew revenue faster over the last twelve months: 41.3% against 13.6%. NetEase, Inc. has the higher net margin (28.0% vs −17.6%) and the higher return on invested capital (605.2% vs 0.00%). Across the 20 metrics below, NetEase, Inc. leads on 17 and Roblox Corporation on 3.

Valuation

Metric NTES RBLX Electronic Gaming & Multimedia median
P/E 15.74 n/m 7.09
P/S 4.32 5.85 1.09
P/B 2.93 258.04 1.02
Price to free cash flow 10.09 20.30 6.55
EV/EBITDA 7.76 n/m 3.29
EV/Sales 2.88 5.50 0.84
Earnings yield 6.35% (3.08%) (3.08%)
Free cash flow yield 9.91% 4.93% 0.00%

Profitability

Metric NTES RBLX Electronic Gaming & Multimedia median
Gross margin 67.15% 78.94% 70.26%
Operating margin 35.28% (20.73%) (8.19%)
Net margin 27.96% (17.61%) (9.89%)
Free cash flow margin 42.84% 28.84% 0.00%
Return on equity 22.94% (429.03%) 0.00%
Return on assets 15.11% (11.38%) (1.43%)
Return on invested capital 605.16% 0.00% 0.00%

Growth

Metric NTES RBLX Electronic Gaming & Multimedia median
Revenue growth (TTM) 13.58% 41.32% 13.58%
EPS growth (last fiscal year) 19.24% (6.94%) —
Revenue growth, 5-year CAGR 7.36% 39.56% (2.72%)
Net income growth, 5-year CAGR 21.16% 0.00% 0.00%

Health

Metric NTES RBLX Electronic Gaming & Multimedia median
Debt to equity 0.07 7.82 0.00
Current ratio 3.45 0.82 1.61
Net debt to EBITDA (4.22) 1.92 0.07

Dividend

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

Size

Metric NTES RBLX Electronic Gaming & Multimedia median
Market cap 73.51b 34.90b 53.60m

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