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NFLX vs. NTES: Netflix vs. NetEase Stock Comparison

How do Netflix (NFLX) and NetEase (NTES) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Netflix (NFLX) and NetEase (NTES) both belong to the Entertainment industry, though NFLX is classified under Movies & Entertainment while NTES falls under Interactive Home Entertainment.

Netflix (NFLX) trades as ordinary local shares, while NetEase (NTES) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Netflix (NFLX) and NetEase (NTES)
Profile ItemNFLXNTES
NameNetflix, Inc.NetEase, Inc. American Depositary Receipt
Country/RegionUnited StatesChina
GICS SectorCommunication ServicesCommunication Services
GICS Industry GroupMedia & EntertainmentMedia & Entertainment
GICS IndustryEntertainmentEntertainment
GICS Sub-IndustryMovies & EntertainmentInteractive Home Entertainment
Market Capitalization285.94 billion USD82.94 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMay 23, 2002June 30, 2000
Security TypeCommon StockADR

Price Performance

Cumulative Growth

NFLX
NTES
GSPC
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Netflix (NFLX) vs. NetEase (NTES), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Netflix (NFLX) and NetEase (NTES). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Netflix (NFLX) and NetEase (NTES). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Netflix (NFLX) and NetEase (NTES)
MetricNFLXNTES
Total Return (1Y)-44.32%-3.38%
Total Return (3Y, Annualized)17.11%11.03%
Total Return (5Y, Annualized)5.98%5.01%

Risk Profile

Drawdown History

NFLX
NTES
GSPC
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Netflix (NFLX) vs. NetEase (NTES), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Netflix (NFLX) and NetEase (NTES). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Netflix (NFLX) and NetEase (NTES)
MetricNFLXNTES
Volatility (1Y, Annualized)34.77%31.41%
Beta (5Y)1.530.73
Max Drawdown (5Y)-75.95%-51.38%
Avg. Volume (3M)42.81M1.02M

Risk-Adjusted Performance

Risk-Return Positioning

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NFLX and NTES are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Netflix (NFLX) and NetEase (NTES)
MetricNFLXNTES
Sharpe Ratio (1Y)-1.39-0.24
Sortino Ratio (1Y)-1.83-0.35

Profitability

ROE (TTM)

Both companies show strong equity returns, but Netflix (NFLX) at 49.54% is the standout with ROE above its industry range; NetEase (NTES) at 22.13% also sits in the top quartile.

NFLX

Media & Entertainment industry group

49.54%

NFLX
49.54%
Max
38.89%
Q3
16.35%
Median
6.52%
Q1
-3.39%
Min
-29.59%

NTES

Media & Entertainment industry group

22.13%

Max
38.89%
NTES
22.13%
Q3
16.35%
Median
6.52%
Q1
-3.39%
Min
-29.59%
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Netflix (NFLX) vs. NetEase (NTES): A comparison of their ROE against the Media & Entertainment industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Netflix (NFLX) at 28.22% and NetEase (NTES) at 29.84% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

NFLX

Media & Entertainment industry group

28.22%

Max
30.77%
NFLX
28.22%
Q3
11.05%
Median
3.73%
Q1
-3.12%
Min
-24.17%

NTES

Media & Entertainment industry group

29.84%

Max
30.77%
NTES
29.84%
Q3
11.05%
Median
3.73%
Q1
-3.12%
Min
-24.17%
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Netflix (NFLX) vs. NetEase (NTES): A comparison of their net margin against the Media & Entertainment industry group benchmark.

Operating Margin (TTM)

Both Netflix (NFLX) at 33.38% and NetEase (NTES) at 41.37% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

NFLX

Media & Entertainment industry group

33.38%

Max
41.37%
NFLX
33.38%
Q3
15.96%
Median
7.22%
Q1
-3.48%
Min
-27.39%

NTES

Media & Entertainment industry group

41.37%

NTES
41.37%
Max
41.37%
Q3
15.96%
Median
7.22%
Q1
-3.48%
Min
-27.39%
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Netflix (NFLX) vs. NetEase (NTES): A comparison of their operating margin against the Media & Entertainment industry group benchmark.

Profitability Metrics

Profitability metrics for Netflix (NFLX) and NetEase (NTES)
MetricNFLXNTES
ROE (TTM)49.54%22.13%
ROA (TTM)16.09%11.00%
Net Margin (TTM)28.22%29.84%
Operating Margin (TTM)33.38%41.37%
Gross Margin (TTM)49.12%65.69%

Growth

Revenue Growth

Netflix (NFLX) at 15.85% sits in the top revenue growth quartile, while NetEase (NTES) at 6.96% is closer to the peer norm — faster top-line expansion for NFLX.

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Netflix (NFLX) vs. NetEase (NTES): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Netflix (NFLX) at 27.58% and NetEase (NTES) at 14.04% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Netflix (NFLX) vs. NetEase (NTES): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Netflix (NFLX) and NetEase (NTES)
MetricNFLXNTES
Revenue Growth (YoY)15.85%6.96%
Revenue Growth (3Y CAGR)12.64%5.29%
EPS Growth (YoY)27.58%14.04%
EPS Growth (3Y CAGR)36.49%19.31%

Financial Strength

Current Ratio (MRQ)

Netflix (NFLX) at 1.14 keeps current ratio within its industry’s typical mid-range, while NetEase (NTES) at 3.29 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

NFLX

Media & Entertainment industry group

1.14

Max
4.37
Q3
2.40
Median
1.44
NFLX
1.14
Q1
1.02
Min
0.31

NTES

Media & Entertainment industry group

3.29

Max
4.37
NTES
3.29
Q3
2.40
Median
1.44
Q1
1.02
Min
0.31
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Netflix (NFLX) vs. NetEase (NTES): A comparison of their current ratio against the Media & Entertainment industry group benchmark.

Debt / Equity (MRQ)

NetEase (NTES) at 0.06 keeps leverage in the lower industry quartile, while Netflix (NFLX) at 0.55 runs a more typical debt-to-equity mix.

NFLX

Media & Entertainment industry group

0.55

Max
2.46
Q3
1.10
NFLX
0.55
Median
0.47
Q1
0.13
Min
0.00

NTES

Media & Entertainment industry group

0.06

Max
2.46
Q3
1.10
Median
0.47
Q1
0.13
NTES
0.06
Min
0.00
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Netflix (NFLX) vs. NetEase (NTES): A comparison of their debt-to-equity ratio against the Media & Entertainment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Netflix (NFLX) and NetEase (NTES)
MetricNFLXNTES
Current Ratio (MRQ)1.143.29
Debt / Equity (MRQ)0.550.06
Net Debt / EBITDA0.51-3.97

Dividends

Dividend Yield (TTM)

Netflix (NFLX) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile NetEase (NTES) reports a yield of 3.11%, ranking against industry peers normally.

NFLX

Media & Entertainment industry group

0.00%

Max
1.97%
Q3
0.88%
NFLX
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

NTES

Media & Entertainment industry group

3.11%

NTES
3.11%
Max
1.97%
Q3
0.88%
Median
0.00%
Q1
0.00%
Min
0.00%
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Netflix (NFLX) vs. NetEase (NTES): A comparison of their dividend yield against the Media & Entertainment industry group benchmark.

Dividend Payout Ratio (TTM)

Netflix (NFLX) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile NetEase (NTES) reports a payout of 39.66%, ranking against industry peers normally.

NFLX

Media & Entertainment industry group

0.00%

Max
41.30%
Q3
17.37%
NFLX
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

NTES

Media & Entertainment industry group

39.66%

Max
41.30%
NTES
39.66%
Q3
17.37%
Median
0.00%
Q1
0.00%
Min
0.00%
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Netflix (NFLX) vs. NetEase (NTES): A comparison of their payout ratio against the Media & Entertainment industry group benchmark.

Dividend Metrics

Dividend metrics for Netflix (NFLX) and NetEase (NTES)
MetricNFLXNTES
Dividend Yield (TTM)0.00%3.11%
Dividend Payout Ratio (TTM)0.00%39.66%

Valuation

P/E Ratio (TTM)

Both Netflix (NFLX) at 21.26 and NetEase (NTES) at 17.27 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

NFLX

Media & Entertainment industry group

21.26

Max
78.62
Q3
41.37
Median
23.47
NFLX
21.26
Q1
12.58
Min
1.74

NTES

Media & Entertainment industry group

17.27

Max
78.62
Q3
41.37
Median
23.47
NTES
17.27
Q1
12.58
Min
1.74
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Netflix (NFLX) vs. NetEase (NTES): A comparison of their P/E ratio against the Media & Entertainment industry group benchmark.

P/S Ratio (TTM)

NetEase (NTES) at 0.73 is priced about in line with its industry on P/S ratio, while Netflix (NFLX) at 5.91 sits in the pricier quartile — NFLX costs more per dollar of sales.

NFLX

Media & Entertainment industry group

5.91

Max
7.60
NFLX
5.91
Q3
3.84
Median
1.52
Q1
0.68
Min
0.00

NTES

Media & Entertainment industry group

0.73

Max
7.60
Q3
3.84
Median
1.52
NTES
0.73
Q1
0.68
Min
0.00
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Netflix (NFLX) vs. NetEase (NTES): A comparison of their P/S ratio against the Media & Entertainment industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Netflix (NFLX) at 9.48 sits in the upper P/B ratio quartile, and NetEase (NTES) at 17.04 prices even higher, above its industry range.

NFLX

Media & Entertainment industry group

9.48

Max
13.29
NFLX
9.48
Q3
5.93
Median
2.00
Q1
0.76
Min
-3.80

NTES

Media & Entertainment industry group

17.04

NTES
17.04
Max
13.29
Q3
5.93
Median
2.00
Q1
0.76
Min
-3.80
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Netflix (NFLX) vs. NetEase (NTES): A comparison of their P/B ratio against the Media & Entertainment industry group benchmark.

Valuation Metrics

Valuation metrics for Netflix (NFLX) and NetEase (NTES)
MetricNFLXNTES
P/E Ratio (TTM)21.2617.27
P/S Ratio (TTM)5.910.73
P/B Ratio (MRQ)9.4817.04
Free Cash Flow Yield (TTM)8.88%41.17%