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

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

Company Profile

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

SymbolNETNTES
Company NameCloudflare, Inc.NetEase, Inc.
CountryUnited StatesChina
GICS SectorInformation TechnologyCommunication Services
GICS IndustryIT ServicesEntertainment
Market Capitalization76.67 billion USD100.28 billion USD
ExchangeNYSENasdaqGS
Listing DateSeptember 13, 2019June 30, 2000
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of NET 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.

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

Historical Performance at a Glance

SymbolNETNTES
5-Day Price Return-2.03%0.46%
13-Week Price Return13.70%18.18%
26-Week Price Return104.86%46.68%
52-Week Price Return173.33%54.63%
Month-to-Date Return2.52%1.28%
Year-to-Date Return104.31%72.55%
10-Day Avg. Volume2.15M0.55M
3-Month Avg. Volume2.85M0.75M
3-Month Volatility36.03%30.00%
Beta1.940.69

Profitability

Return on Equity (TTM)

NET

-10.00%

IT Services Industry

Max
32.78%
Q3
19.28%
Median
13.86%
Q1
5.50%
Min
-10.00%

NET has a negative Return on Equity of -10.00%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

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.

NET vs. NTES: A comparison of their Return on Equity (TTM) against their respective IT Services and Entertainment industry benchmarks.

Net Profit Margin (TTM)

NET

-6.22%

IT Services Industry

Max
19.71%
Q3
11.01%
Median
6.66%
Q1
2.96%
Min
-6.22%

NET has a negative Net Profit Margin of -6.22%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

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.

NET vs. NTES: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Entertainment industry benchmarks.

Operating Profit Margin (TTM)

NET

-9.89%

IT Services Industry

Max
22.44%
Q3
14.90%
Median
8.82%
Q1
4.91%
Min
-9.89%

NET has a negative Operating Profit Margin of -9.89%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

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.

NET vs. NTES: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Entertainment industry benchmarks.

Profitability at a Glance

SymbolNETNTES
Return on Equity (TTM)-10.00%24.25%
Return on Assets (TTM)-2.99%17.31%
Net Profit Margin (TTM)-6.22%31.19%
Operating Profit Margin (TTM)-9.89%31.43%
Gross Profit Margin (TTM)76.14%63.17%

Financial Strength

Current Ratio (MRQ)

NET

5.14

IT Services Industry

Max
3.17
Q3
2.00
Median
1.47
Q1
1.05
Min
0.52

NET’s Current Ratio of 5.14 is exceptionally high, placing it well outside the typical range for the IT Services 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

3.23

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.

NET vs. NTES: A comparison of their Current Ratio (MRQ) against their respective IT Services and Entertainment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

NET

2.63

IT Services Industry

Max
3.11
Q3
1.55
Median
0.55
Q1
0.17
Min
0.00

NET’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 2.63. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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.

NET vs. NTES: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Entertainment industry benchmarks.

Interest Coverage Ratio (TTM)

NET

-4.24

IT Services Industry

Max
129.00
Q3
56.00
Median
11.69
Q1
0.77
Min
-28.15

NET has a negative Interest Coverage Ratio of -4.24. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

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.

NET vs. NTES: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Entertainment industry benchmarks.

Financial Strength at a Glance

SymbolNETNTES
Current Ratio (MRQ)5.143.23
Quick Ratio (MRQ)5.013.10
Debt-to-Equity Ratio (MRQ)2.630.08
Interest Coverage Ratio (TTM)-4.24161.13

Growth

Revenue Growth

NET 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

NET 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)

NET

0.00%

IT Services Industry

Max
2.79%
Q3
1.76%
Median
0.58%
Q1
0.00%
Min
0.00%

NET 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

1.93%

Entertainment Industry

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

With a Dividend Yield of 1.93%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

NET vs. NTES: A comparison of their Dividend Yield (TTM) against their respective IT Services and Entertainment industry benchmarks.

Dividend Payout Ratio (TTM)

NET

0.00%

IT Services Industry

Max
107.85%
Q3
52.62%
Median
22.53%
Q1
0.00%
Min
0.00%

NET 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.

NET vs. NTES: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Entertainment industry benchmarks.

Dividend at a Glance

SymbolNETNTES
Dividend Yield (TTM)0.00%1.93%
Dividend Payout Ratio (TTM)0.00%36.90%

Valuation

Price-to-Earnings Ratio (TTM)

NET

--

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

P/E Ratio data for NET is currently unavailable.

NTES

19.11

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 19.11 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

NET vs. NTES: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Entertainment industry benchmarks.

Price-to-Sales Ratio (TTM)

NET

40.81

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

With a P/S Ratio of 40.81, NET trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

NTES

5.96

Entertainment Industry

Max
12.34
Q3
7.67
Median
5.06
Q1
2.72
Min
0.67

NTES’s P/S Ratio of 5.96 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.

NET vs. NTES: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Entertainment industry benchmarks.

Price-to-Book Ratio (MRQ)

NET

54.75

IT Services Industry

Max
12.34
Q3
7.54
Median
3.84
Q1
2.52
Min
0.88

At 54.75, NET’s P/B Ratio is at an extreme premium to the IT Services 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.

NET vs. NTES: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Entertainment industry benchmarks.

Valuation at a Glance

SymbolNETNTES
Price-to-Earnings Ratio (TTM)--19.11
Price-to-Sales Ratio (TTM)40.815.96
Price-to-Book Ratio (MRQ)54.754.06
Price-to-Free Cash Flow Ratio (TTM)428.4614.77