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 $81.0B against $328.7M — 246.3× the size. Sohu.com Inc. trades at the lower P/E: 1.5× against 17.2×. 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 17.20 1.49 6.47
P/S 4.72 0.54 1.39
P/B 3.20 0.25 0.98
Price to free cash flow 11.02 n/m 6.54
EV/EBITDA 8.83 n/m 1.33
EV/Sales 3.28 0.09 0.97
Earnings yield 5.81% 67.27% (2.89%)
Free cash flow yield 9.08% (0.70%) 0.00%

Profitability

Metric NTES SOHU Electronic Gaming & Multimedia median
Gross margin 67.15% 78.50% 70.26%
Operating margin 35.28% (12.93%) (8.19%)
Net margin 27.96% 38.15% (9.89%)
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% (1.43%)
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% 13.58%
EPS growth (last fiscal year) 19.24% 546.01% (4.55%)
Revenue growth, 5-year CAGR 7.36% (4.87%) (2.72%)
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 1.61
Net debt to EBITDA (4.22) 26.04 0.07

Dividend

Metric NTES SOHU Electronic Gaming & Multimedia median
Dividend yield 2.32% — —
Payout ratio 0.40 — —

Size

Metric NTES SOHU Electronic Gaming & Multimedia median
Market cap 80.96b 328.74m 50.21m

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