ALAB vs. NTES: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALAB and NTES, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
NTES’s market capitalization of 84.47 billion USD is significantly greater than ALAB’s 14.97 billion USD, highlighting its more substantial market valuation.
ALAB’s beta of 1.40 points to significantly higher volatility compared to NTES (beta: 0.85), suggesting ALAB has greater potential for both gains and losses relative to market movements.
NTES is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ALAB, on the other hand, is a domestic entity.
| Symbol | ALAB | NTES |
|---|---|---|
| Company Name | Astera Labs, Inc. Common Stock | NetEase, Inc. |
| Country | US | CN |
| Sector | Technology | Technology |
| Industry | Semiconductors | Electronic Gaming & Multimedia |
| CEO | Jitendra Mohan | Lei Ding |
| Price | 90.8 USD | 132.85 USD |
| Market Cap | 14.97 billion USD | 84.47 billion USD |
| Beta | 1.40 | 0.85 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | March 20, 2024 | June 30, 2000 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ALAB and NTES by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ALAB
4.43%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
ALAB’s Return on Equity of 4.43% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.
NTES
23.73%
Electronic Gaming & Multimedia Industry
- Max
- 22.45%
- Q3
- 13.61%
- Median
- -5.53%
- Q1
- -70.13%
- Min
- -121.78%
NTES’s Return on Equity of 23.73% is exceptionally high, placing it well beyond the typical range for the Electronic Gaming & Multimedia industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
ALAB
-4.25%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
ALAB has a negative Return on Invested Capital of -4.25%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
NTES
17.02%
Electronic Gaming & Multimedia Industry
- Max
- 17.62%
- Q3
- 11.24%
- Median
- 1.98%
- Q1
- -22.67%
- Min
- -64.64%
In the upper quartile for the Electronic Gaming & Multimedia industry, NTES’s Return on Invested Capital of 17.02% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ALAB
8.44%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
ALAB’s Net Profit Margin of 8.44% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.
NTES
30.17%
Electronic Gaming & Multimedia Industry
- Max
- 28.20%
- Q3
- 16.08%
- Median
- 10.20%
- Q1
- -7.35%
- Min
- -22.94%
NTES’s Net Profit Margin of 30.17% is exceptionally high, placing it well beyond the typical range for the Electronic Gaming & Multimedia industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin
ALAB
-4.45%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
ALAB has a negative Operating Profit Margin of -4.45%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
NTES
30.21%
Electronic Gaming & Multimedia Industry
- Max
- 28.10%
- Q3
- 17.15%
- Median
- 5.89%
- Q1
- -19.43%
- Min
- -26.48%
NTES’s Operating Profit Margin of 30.21% is exceptionally high, placing it well above the typical range for the Electronic Gaming & Multimedia industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | ALAB | NTES |
|---|---|---|
| Return on Equity (TTM) | 4.43% | 23.73% |
| Return on Assets (TTM) | 3.69% | 16.11% |
| Return on Invested Capital (TTM) | -4.25% | 17.02% |
| Net Profit Margin (TTM) | 8.44% | 30.17% |
| Operating Profit Margin (TTM) | -4.45% | 30.21% |
| Gross Profit Margin (TTM) | 75.76% | 62.71% |
Financial Strength
Current Ratio
ALAB
13.92
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
ALAB’s Current Ratio of 13.92 is exceptionally high, placing it well outside the typical range for the Semiconductors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
NTES
3.21
Electronic Gaming & Multimedia Industry
- Max
- 3.22
- Q3
- 2.77
- Median
- 1.19
- Q1
- 0.82
- Min
- 0.01
NTES’s Current Ratio of 3.21 is in the upper quartile for the Electronic Gaming & Multimedia industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio
ALAB
--
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
Debt-to-Equity Ratio data for ALAB is currently unavailable.
NTES
0.07
Electronic Gaming & Multimedia Industry
- Max
- 1.92
- Q3
- 1.14
- Median
- 0.31
- Q1
- 0.17
- Min
- 0.09
At 0.07, NTES’s Debt-to-Equity Ratio is unusually low for the Electronic Gaming & Multimedia industry. This highlights a conservative capital structure, suggesting the company prioritizes financial stability over aggressive growth funded by debt.
Interest Coverage Ratio
ALAB
--
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
Interest Coverage Ratio data for ALAB is currently unavailable.
NTES
--
Electronic Gaming & Multimedia Industry
- Max
- 20.61
- Q3
- 4.69
- Median
- -1.31
- Q1
- -20.23
- Min
- -25.09
Interest Coverage Ratio data for NTES is currently unavailable.
Financial Strength at a Glance
| Symbol | ALAB | NTES |
|---|---|---|
| Current Ratio (TTM) | 13.92 | 3.21 |
| Quick Ratio (TTM) | 13.26 | 3.20 |
| Debt-to-Equity Ratio (TTM) | -- | 0.07 |
| Debt-to-Asset Ratio (TTM) | -- | 0.05 |
| Net Debt-to-EBITDA Ratio (TTM) | 4.76 | -0.92 |
| Interest Coverage Ratio (TTM) | -- | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALAB and NTES. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ALAB
0.00%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALAB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
NTES
1.49%
Electronic Gaming & Multimedia Industry
- Max
- 8.44%
- Q3
- 0.36%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.49%, NTES offers a more attractive income stream than most of its peers in the Electronic Gaming & Multimedia industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ALAB
0.00%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALAB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
NTES
36.47%
Electronic Gaming & Multimedia Industry
- Max
- 106.44%
- Q3
- 13.31%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NTES’s Dividend Payout Ratio of 36.47% is in the upper quartile for the Electronic Gaming & Multimedia industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ALAB | NTES |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.49% |
| Dividend Payout Ratio (TTM) | 0.00% | 36.47% |
Valuation
Price-to-Earnings Ratio
ALAB
357.98
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
At 357.98, ALAB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
NTES
18.79
Electronic Gaming & Multimedia Industry
- Max
- 36.87
- Q3
- 20.95
- Median
- 12.73
- Q1
- 7.31
- Min
- 3.67
NTES’s P/E Ratio of 18.79 is within the middle range for the Electronic Gaming & Multimedia industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ALAB
10.80
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
NTES
2.72
Electronic Gaming & Multimedia Industry
- Max
- 2.97
- Q3
- 2.24
- Median
- 1.87
- Q1
- 1.76
- Min
- 1.76
A Forward PEG Ratio of 2.72 places NTES in the upper quartile for the Electronic Gaming & Multimedia industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
ALAB
30.53
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
With a P/S Ratio of 30.53, ALAB trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
NTES
5.68
Electronic Gaming & Multimedia Industry
- Max
- 7.60
- Q3
- 6.29
- Median
- 3.76
- Q1
- 1.02
- Min
- 0.66
NTES’s P/S Ratio of 5.68 aligns with the market consensus for the Electronic Gaming & Multimedia industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ALAB
14.23
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
At 14.23, ALAB’s P/B Ratio is at an extreme premium to the Semiconductors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
NTES
4.23
Electronic Gaming & Multimedia Industry
- Max
- 6.47
- Q3
- 6.47
- Median
- 4.48
- Q1
- 1.29
- Min
- 0.36
The P/B Ratio is often not a primary valuation metric for the Electronic Gaming & Multimedia industry.
Valuation at a Glance
| Symbol | ALAB | NTES |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 357.98 | 18.79 |
| Forward PEG Ratio (TTM) | 10.80 | 2.72 |
| Price-to-Sales Ratio (P/S, TTM) | 30.53 | 5.68 |
| Price-to-Book Ratio (P/B, TTM) | 14.23 | 4.23 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 138.44 | 15.23 |
| EV-to-EBITDA (TTM) | -820.32 | 16.61 |
| EV-to-Sales (TTM) | 30.35 | 5.38 |