NetEase, Inc. (NTES) vs Take-Two Interactive Software, Inc. (TTWO)

NetEase, Inc. and Take-Two Interactive Software, Inc. are both Electronic Gaming & Multimedia companies. NetEase, Inc. is the larger, with a market value of $73.5B against $38.0B — 1.9× the size. Take-Two Interactive Software, Inc. has negative trailing earnings, so its P/E is not meaningful; NetEase, Inc. trades at 15.7×. Take-Two Interactive Software, Inc. grew revenue faster over the last twelve months: 15.3% against 13.6%. NetEase, Inc. has the higher net margin (28.0% vs −4.79%) and the higher return on invested capital (605.2% vs −2.35%). Across the 21 metrics below, NetEase, Inc. leads on 18 and Take-Two Interactive Software, Inc. on 3.

Valuation

Metric NTES TTWO Electronic Gaming & Multimedia median
P/E 15.74 n/m 7.09
P/S 4.32 5.61 1.09
P/B 2.93 10.39 1.02
Price to free cash flow 10.09 125.57 6.55
EV/EBITDA 7.76 31.91 3.29
EV/Sales 2.88 5.71 0.84
Earnings yield 6.35% (0.86%) (3.08%)
Free cash flow yield 9.91% 0.80% 0.00%

Profitability

Metric NTES TTWO Electronic Gaming & Multimedia median
Gross margin 67.15% 56.04% 70.26%
Operating margin 35.28% (2.41%) (8.19%)
Net margin 27.96% (4.79%) (9.89%)
Free cash flow margin 42.84% 4.47% 0.00%
Return on equity 22.94% (9.04%) 0.00%
Return on assets 15.11% (3.42%) (1.43%)
Return on invested capital 605.16% (2.35%) 0.00%

Growth

Metric NTES TTWO Electronic Gaming & Multimedia median
Revenue growth (TTM) 13.58% 15.30% 13.58%
EPS growth (last fiscal year) 19.24% 93.67% —
Revenue growth, 5-year CAGR 7.36% 14.56% (2.72%)
Net income growth, 5-year CAGR 21.16% 0.00% 0.00%

Health

Metric NTES TTWO Electronic Gaming & Multimedia median
Debt to equity 0.07 0.70 0.00
Current ratio 3.45 1.06 1.61
Net debt to EBITDA (4.22) 0.43 0.07

Dividend

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

Size

Metric NTES TTWO Electronic Gaming & Multimedia median
Market cap 73.51b 38.02b 53.60m

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