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 $82.5B against $35.3B — 2.3× the size. Roblox Corporation has negative trailing earnings, so its P/E is not meaningful; NetEase, Inc. trades at 17.3×. Roblox Corporation grew revenue faster over the last twelve months: 32.1% against 13.6%. NetEase, Inc. has the higher net margin (28.0% vs −16.5%) and the higher return on invested capital (605.2% vs 0.00%). Across the 19 metrics below, NetEase, Inc. leads on 15 and Roblox Corporation on 4.

Valuation

Metric NTES RBLX Electronic Gaming & Multimedia median
P/E 17.29 n/m 7.39
P/S 4.85 6.25 0.64
P/B 3.28 n/m 0.77
Price to free cash flow 11.32 23.63 5.55
EV/EBITDA 9.18 n/m 2.12
EV/Sales 3.41 5.88 0.77
Earnings yield 5.78% (2.68%) (1.65%)
Free cash flow yield 8.83% 4.23% 0.22%

Profitability

Metric NTES RBLX Electronic Gaming & Multimedia median
Gross margin 67.15% 79.33% 67.15%
Operating margin 35.28% (19.76%) (12.93%)
Net margin 27.96% (16.48%) (1.88%)
Free cash flow margin 42.84% 26.47% 0.00%
Return on equity 22.94% (535.22%) 0.00%
Return on assets 15.11% (10.43%) (1.24%)
Return on invested capital 605.16% 0.00% 0.00%

Growth

Metric NTES RBLX Electronic Gaming & Multimedia median
Revenue growth (TTM) 13.58% 32.11% 3.72%
EPS growth (last fiscal year) 19.24% (6.94%) (2.28%)
Revenue growth, 5-year CAGR 7.36% 39.56% (1.32%)
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 (37.37) 0.00
Current ratio 3.45 0.80 1.57
Net debt to EBITDA (4.22) 1.92 0.35

Dividend

Metric NTES RBLX Electronic Gaming & Multimedia median
Dividend yield 2.26% — —
Payout ratio 0.39 — —

Size

Metric NTES RBLX Electronic Gaming & Multimedia median
Market cap 82.45b 35.28b 77.82m

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