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 $80.6B against $39.9B — 2.0× the size. Take-Two Interactive Software, Inc. has negative trailing earnings, so its P/E is not meaningful; NetEase, Inc. trades at 16.9×. 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 16.92 n/m 7.53
P/S 4.74 5.94 0.61
P/B 3.21 11.01 0.67
Price to free cash flow 11.08 133.03 5.26
EV/EBITDA 8.90 33.77 2.12
EV/Sales 3.31 6.04 0.58
Earnings yield 5.91% (0.81%) (1.85%)
Free cash flow yield 9.03% 0.75% 0.38%

Profitability

Metric NTES TTWO Electronic Gaming & Multimedia median
Gross margin 67.15% 56.04% 67.15%
Operating margin 35.28% (2.41%) (12.93%)
Net margin 27.96% (4.79%) (2.40%)
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%) (1.71%)
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% 9.23%
EPS growth (last fiscal year) 19.24% 93.67% (2.28%)
Revenue growth, 5-year CAGR 7.36% 14.56% (1.32%)
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 1.57
Net debt to EBITDA (4.22) 0.43 0.35

Dividend

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

Size

Metric NTES TTWO Electronic Gaming & Multimedia median
Market cap 80.61b 39.89b 80.62m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack