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 $81.0B against $39.2B — 2.1× the size. Take-Two Interactive Software, Inc. has negative trailing earnings, so its P/E is not meaningful; NetEase, Inc. trades at 17.2×. 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 17.20 n/m 6.47
P/S 4.72 5.72 1.39
P/B 3.20 10.59 0.98
Price to free cash flow 11.02 127.97 6.54
EV/EBITDA 8.83 32.51 1.33
EV/Sales 3.28 5.82 0.97
Earnings yield 5.81% (0.84%) (2.89%)
Free cash flow yield 9.08% 0.78% 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% (4.55%)
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 2.32% — —
Payout ratio 0.40 — —

Size

Metric NTES TTWO Electronic Gaming & Multimedia median
Market cap 80.96b 39.15b 50.21m

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