NetEase, Inc. (NTES) vs Sohu.com Inc. (SOHU)

NetEase, Inc. and Sohu.com Inc. are both Electronic Gaming & Multimedia companies. NetEase, Inc. is the larger, with a market value of $80.6B against $355.1M — 227.0× the size. Sohu.com Inc. trades at the lower P/E: 1.6× against 16.9×. NetEase, Inc. grew revenue faster over the last twelve months: 13.6% against 9.23%. Sohu.com Inc. has the higher net margin (38.2% vs 28.0%) and the lower return on invested capital (−10.7% vs 605.2%). Across the 20 metrics below, NetEase, Inc. leads on 11 and Sohu.com Inc. on 9.

Valuation

Metric NTES SOHU Electronic Gaming & Multimedia median
P/E 16.92 1.59 7.53
P/S 4.74 0.58 0.61
P/B 3.21 0.27 0.67
Price to free cash flow 11.08 n/m 5.26
EV/EBITDA 8.90 n/m 2.12
EV/Sales 3.31 0.13 0.58
Earnings yield 5.91% 62.78% (1.85%)
Free cash flow yield 9.03% (0.65%) 0.38%

Profitability

Metric NTES SOHU Electronic Gaming & Multimedia median
Gross margin 67.15% 78.50% 67.15%
Operating margin 35.28% (12.93%) (12.93%)
Net margin 27.96% 38.15% (2.40%)
Free cash flow margin 42.84% 0.00% 0.00%
Return on equity 22.94% 0.00% 0.00%
Return on assets 15.11% 13.88% (1.71%)
Return on invested capital 605.16% (10.74%) 0.00%

Growth

Metric NTES SOHU Electronic Gaming & Multimedia median
Revenue growth (TTM) 13.58% 9.23% 9.23%
EPS growth (last fiscal year) 19.24% 546.01% (2.28%)
Revenue growth, 5-year CAGR 7.36% (4.87%) (1.32%)
Net income growth, 5-year CAGR 21.16% 0.00% 0.00%

Health

Metric NTES SOHU Electronic Gaming & Multimedia median
Debt to equity 0.07 0.00 0.00
Current ratio 3.45 3.02 1.57
Net debt to EBITDA (4.22) 26.04 0.35

Dividend

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

Size

Metric NTES SOHU Electronic Gaming & Multimedia median
Market cap 80.61b 355.07m 80.62m

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