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

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

Company Profile

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

SymbolEANTES
Company NameElectronic Arts Inc.NetEase, Inc.
CountryUnited StatesChina
GICS SectorCommunication ServicesCommunication Services
GICS IndustryEntertainmentEntertainment
Market Capitalization44.64 billion USD86.89 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateSeptember 20, 1989June 30, 2000
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of EA 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.

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

Historical Performance at a Glance

SymbolEANTES
5-Day Price Return9.62%3.04%
13-Week Price Return19.52%26.29%
26-Week Price Return35.15%30.71%
52-Week Price Return22.27%50.64%
Month-to-Date Return16.99%3.53%
Year-to-Date Return21.94%51.22%
10-Day Avg. Volume3.73M0.87M
3-Month Avg. Volume3.12M1.16M
3-Month Volatility26.34%37.46%
Beta0.750.66

Profitability

Return on Equity (TTM)

EA

15.27%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

EA’s Return on Equity of 15.27% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.

NTES

23.73%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

In the upper quartile for the Entertainment industry, NTES’s Return on Equity of 23.73% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

EA vs. NTES: A comparison of their Return on Equity (TTM) against the Entertainment industry benchmark.

Net Profit Margin (TTM)

EA

13.94%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

EA’s Net Profit Margin of 13.94% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.

NTES

30.17%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

A Net Profit Margin of 30.17% places NTES in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

EA vs. NTES: A comparison of their Net Profit Margin (TTM) against the Entertainment industry benchmark.

Operating Profit Margin (TTM)

EA

19.09%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

EA’s Operating Profit Margin of 19.09% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

NTES

30.21%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

An Operating Profit Margin of 30.21% 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.

EA vs. NTES: A comparison of their Operating Profit Margin (TTM) against the Entertainment industry benchmark.

Profitability at a Glance

SymbolEANTES
Return on Equity (TTM)15.27%23.73%
Return on Assets (TTM)8.23%16.92%
Net Profit Margin (TTM)13.94%30.17%
Operating Profit Margin (TTM)19.09%30.21%
Gross Profit Margin (TTM)79.14%62.71%

Financial Strength

Current Ratio (MRQ)

EA

0.84

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

EA’s Current Ratio of 0.84 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

NTES

3.21

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

NTES’s Current Ratio of 3.21 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

EA vs. NTES: A comparison of their Current Ratio (MRQ) against the Entertainment industry benchmark.

Debt-to-Equity Ratio (MRQ)

EA

0.31

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

EA’s Debt-to-Equity Ratio of 0.31 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.

NTES

0.07

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

NTES’s Debt-to-Equity Ratio of 0.07 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.

EA vs. NTES: A comparison of their Debt-to-Equity Ratio (MRQ) against the Entertainment industry benchmark.

Interest Coverage Ratio (TTM)

EA

190.43

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

With an Interest Coverage Ratio of 190.43, EA 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.

NTES

161.13

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

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.

EA vs. NTES: A comparison of their Interest Coverage Ratio (TTM) against the Entertainment industry benchmark.

Financial Strength at a Glance

SymbolEANTES
Current Ratio (MRQ)0.843.21
Quick Ratio (MRQ)0.843.06
Debt-to-Equity Ratio (MRQ)0.310.07
Interest Coverage Ratio (TTM)190.43161.13

Growth

Revenue Growth

EA 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

EA 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)

EA

0.44%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
Q1
0.00%
Min
0.00%

EA’s Dividend Yield of 0.44% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.

NTES

2.02%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.02%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

EA vs. NTES: A comparison of their Dividend Yield (TTM) against the Entertainment industry benchmark.

Dividend Payout Ratio (TTM)

EA

18.91%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
Q1
0.00%
Min
0.00%

EA’s Dividend Payout Ratio of 18.91% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

NTES

36.47%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
Q1
0.00%
Min
0.00%

NTES’s Dividend Payout Ratio of 36.47% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

EA vs. NTES: A comparison of their Dividend Payout Ratio (TTM) against the Entertainment industry benchmark.

Dividend at a Glance

SymbolEANTES
Dividend Yield (TTM)0.44%2.02%
Dividend Payout Ratio (TTM)18.91%36.47%

Valuation

Price-to-Earnings Ratio (TTM)

EA

43.10

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

EA’s P/E Ratio of 43.10 is within the middle range for the Entertainment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

NTES

18.03

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

In the lower quartile for the Entertainment industry, NTES’s P/E Ratio of 18.03 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

EA vs. NTES: A comparison of their Price-to-Earnings Ratio (TTM) against the Entertainment industry benchmark.

Price-to-Sales Ratio (TTM)

EA

6.01

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

EA’s P/S Ratio of 6.01 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.

NTES

5.44

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

NTES’s P/S Ratio of 5.44 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.

EA vs. NTES: A comparison of their Price-to-Sales Ratio (TTM) against the Entertainment industry benchmark.

Price-to-Book Ratio (MRQ)

EA

6.60

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

EA’s P/B Ratio of 6.60 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.

NTES

3.25

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

NTES’s P/B Ratio of 3.25 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.

EA vs. NTES: A comparison of their Price-to-Book Ratio (MRQ) against the Entertainment industry benchmark.

Valuation at a Glance

SymbolEANTES
Price-to-Earnings Ratio (TTM)43.1018.03
Price-to-Sales Ratio (TTM)6.015.44
Price-to-Book Ratio (MRQ)6.603.25
Price-to-Free Cash Flow Ratio (TTM)24.1714.64