Seek Returns logo

CLS vs. NTES: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at CLS and NTES, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

CLS is a standard domestic listing, while NTES trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolCLSNTES
Company NameCelestica Inc.NetEase, Inc.
CountryCanadaChina
GICS SectorInformation TechnologyCommunication Services
GICS IndustryElectronic Equipment, Instruments & ComponentsEntertainment
Market Capitalization26.93 billion USD96.75 billion USD
ExchangeNYSENasdaqGS
Listing DateJune 30, 1998June 30, 2000
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of CLS 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.

CLS vs. NTES: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCLSNTES
5-Day Price Return3.10%0.14%
13-Week Price Return66.46%14.09%
26-Week Price Return196.03%47.27%
52-Week Price Return415.80%45.38%
Month-to-Date Return2.31%-0.28%
Year-to-Date Return164.12%69.90%
10-Day Avg. Volume1.04M0.65M
3-Month Avg. Volume0.88M0.79M
3-Month Volatility59.08%29.42%
Beta2.720.69

Profitability

Return on Equity (TTM)

CLS

30.66%

Electronic Equipment, Instruments & Components Industry

Max
21.57%
Q3
13.27%
Median
8.55%
Q1
4.42%
Min
-4.21%

CLS’s Return on Equity of 30.66% is exceptionally high, placing it well beyond the typical range for the Electronic Equipment, Instruments & Components industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

NTES

24.25%

Entertainment Industry

Max
42.50%
Q3
24.06%
Median
13.69%
Q1
5.35%
Min
-17.95%

In the upper quartile for the Entertainment industry, NTES’s Return on Equity of 24.25% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

CLS vs. NTES: A comparison of their Return on Equity (TTM) against their respective Electronic Equipment, Instruments & Components and Entertainment industry benchmarks.

Net Profit Margin (TTM)

CLS

5.09%

Electronic Equipment, Instruments & Components Industry

Max
17.31%
Q3
10.85%
Median
7.26%
Q1
3.13%
Min
-3.00%

CLS’s Net Profit Margin of 5.09% is aligned with the median group of its peers in the Electronic Equipment, Instruments & Components industry. This indicates its ability to convert revenue into profit is typical for the sector.

NTES

31.19%

Entertainment Industry

Max
45.33%
Q3
24.40%
Median
13.94%
Q1
4.28%
Min
-23.67%

A Net Profit Margin of 31.19% places NTES in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

CLS vs. NTES: A comparison of their Net Profit Margin (TTM) against their respective Electronic Equipment, Instruments & Components and Entertainment industry benchmarks.

Operating Profit Margin (TTM)

CLS

7.01%

Electronic Equipment, Instruments & Components Industry

Max
30.04%
Q3
15.08%
Median
9.55%
Q1
4.27%
Min
-3.83%

CLS’s Operating Profit Margin of 7.01% is around the midpoint for the Electronic Equipment, Instruments & Components industry, indicating that its efficiency in managing core business operations is typical for the sector.

NTES

31.43%

Entertainment Industry

Max
41.77%
Q3
28.26%
Median
16.13%
Q1
8.03%
Min
-3.93%

An Operating Profit Margin of 31.43% places NTES in the upper quartile for the Entertainment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

CLS vs. NTES: A comparison of their Operating Profit Margin (TTM) against their respective Electronic Equipment, Instruments & Components and Entertainment industry benchmarks.

Profitability at a Glance

SymbolCLSNTES
Return on Equity (TTM)30.66%24.25%
Return on Assets (TTM)8.98%17.31%
Net Profit Margin (TTM)5.09%31.19%
Operating Profit Margin (TTM)7.01%31.43%
Gross Profit Margin (TTM)11.36%63.17%

Financial Strength

Current Ratio (MRQ)

CLS

1.44

Electronic Equipment, Instruments & Components Industry

Max
4.57
Q3
2.85
Median
2.03
Q1
1.51
Min
0.62

CLS’s Current Ratio of 1.44 falls into the lower quartile for the Electronic Equipment, Instruments & Components industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

NTES

3.23

Entertainment Industry

Max
6.76
Q3
4.02
Median
1.55
Q1
0.86
Min
0.38

NTES’s Current Ratio of 3.23 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

CLS vs. NTES: A comparison of their Current Ratio (MRQ) against their respective Electronic Equipment, Instruments & Components and Entertainment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CLS

0.50

Electronic Equipment, Instruments & Components Industry

Max
1.14
Q3
0.54
Median
0.30
Q1
0.11
Min
0.00

CLS’s Debt-to-Equity Ratio of 0.50 is typical for the Electronic Equipment, Instruments & Components industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

NTES

0.08

Entertainment Industry

Max
1.54
Q3
0.77
Median
0.16
Q1
0.02
Min
0.00

NTES’s Debt-to-Equity Ratio of 0.08 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CLS vs. NTES: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Electronic Equipment, Instruments & Components and Entertainment industry benchmarks.

Interest Coverage Ratio (TTM)

CLS

36.72

Electronic Equipment, Instruments & Components Industry

Max
79.05
Q3
36.62
Median
12.51
Q1
3.72
Min
-18.73

CLS’s Interest Coverage Ratio of 36.72 is in the upper quartile for the Electronic Equipment, Instruments & Components industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

NTES

161.13

Entertainment Industry

Max
87.17
Q3
35.59
Median
7.06
Q1
1.13
Min
-44.74

With an Interest Coverage Ratio of 161.13, NTES demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

CLS vs. NTES: A comparison of their Interest Coverage Ratio (TTM) against their respective Electronic Equipment, Instruments & Components and Entertainment industry benchmarks.

Financial Strength at a Glance

SymbolCLSNTES
Current Ratio (MRQ)1.443.23
Quick Ratio (MRQ)0.863.10
Debt-to-Equity Ratio (MRQ)0.500.08
Interest Coverage Ratio (TTM)36.72161.13

Growth

Revenue Growth

CLS vs. NTES: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CLS vs. NTES: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

CLS

0.00%

Electronic Equipment, Instruments & Components Industry

Max
5.36%
Q3
2.53%
Median
1.28%
Q1
0.16%
Min
0.00%

CLS 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

1.87%

Entertainment Industry

Max
2.90%
Q3
1.29%
Median
0.59%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.87%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

CLS vs. NTES: A comparison of their Dividend Yield (TTM) against their respective Electronic Equipment, Instruments & Components and Entertainment industry benchmarks.

Dividend Payout Ratio (TTM)

CLS

0.00%

Electronic Equipment, Instruments & Components Industry

Max
218.94%
Q3
90.25%
Median
38.81%
Q1
3.69%
Min
0.00%

CLS 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

36.90%

Entertainment Industry

Max
82.30%
Q3
38.45%
Median
29.74%
Q1
0.00%
Min
0.00%

NTES’s Dividend Payout Ratio of 36.90% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CLS vs. NTES: A comparison of their Dividend Payout Ratio (TTM) against their respective Electronic Equipment, Instruments & Components and Entertainment industry benchmarks.

Dividend at a Glance

SymbolCLSNTES
Dividend Yield (TTM)0.00%1.87%
Dividend Payout Ratio (TTM)0.00%36.90%

Valuation

Price-to-Earnings Ratio (TTM)

CLS

53.59

Electronic Equipment, Instruments & Components Industry

Max
74.74
Q3
42.40
Median
26.55
Q1
20.05
Min
10.12

A P/E Ratio of 53.59 places CLS in the upper quartile for the Electronic Equipment, Instruments & Components industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

NTES

19.73

Entertainment Industry

Max
92.09
Q3
54.51
Median
28.92
Q1
19.75
Min
2.96

In the lower quartile for the Entertainment industry, NTES’s P/E Ratio of 19.73 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

CLS vs. NTES: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Electronic Equipment, Instruments & Components and Entertainment industry benchmarks.

Price-to-Sales Ratio (TTM)

CLS

2.73

Electronic Equipment, Instruments & Components Industry

Max
6.79
Q3
3.58
Median
2.05
Q1
1.29
Min
0.20

CLS’s P/S Ratio of 2.73 aligns with the market consensus for the Electronic Equipment, Instruments & Components industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

NTES

6.15

Entertainment Industry

Max
12.34
Q3
7.67
Median
5.06
Q1
2.72
Min
0.67

NTES’s P/S Ratio of 6.15 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CLS vs. NTES: A comparison of their Price-to-Sales Ratio (TTM) against their respective Electronic Equipment, Instruments & Components and Entertainment industry benchmarks.

Price-to-Book Ratio (MRQ)

CLS

9.97

Electronic Equipment, Instruments & Components Industry

Max
6.92
Q3
3.80
Median
2.23
Q1
1.42
Min
0.44

At 9.97, CLS’s P/B Ratio is at an extreme premium to the Electronic Equipment, Instruments & Components 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

4.06

Entertainment Industry

Max
22.84
Q3
10.54
Median
6.60
Q1
2.30
Min
0.65

NTES’s P/B Ratio of 4.06 is within the conventional range for the Entertainment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

CLS vs. NTES: A comparison of their Price-to-Book Ratio (MRQ) against their respective Electronic Equipment, Instruments & Components and Entertainment industry benchmarks.

Valuation at a Glance

SymbolCLSNTES
Price-to-Earnings Ratio (TTM)53.5919.73
Price-to-Sales Ratio (TTM)2.736.15
Price-to-Book Ratio (MRQ)9.974.06
Price-to-Free Cash Flow Ratio (TTM)74.7415.25