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

Updated on October 3, 2025

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

Company Profile

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

Symbol	NTES	PANW
Company Name	NetEase, Inc.	Palo Alto Networks, Inc.
Country	China	United States
GICS Sector	Communication Services	Information Technology
GICS Industry	Entertainment	Software
Market Capitalization	94.99 billion USD	139.98 billion USD
Exchange	NasdaqGS	NasdaqGS
Listing Date	June 30, 2000	July 20, 2012
Security Type	ADR	Common Stock

Historical Performance

This chart compares the performance of NTES and PANW 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.

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

Historical Performance at a Glance

Symbol	NTES	PANW
5-Day Price Return	-0.58%	2.27%
13-Week Price Return	11.31%	4.67%
26-Week Price Return	47.44%	18.55%
52-Week Price Return	60.43%	21.01%
Month-to-Date Return	-1.30%	1.56%
Year-to-Date Return	68.17%	13.65%
10-Day Avg. Volume	0.71M	6.00M
3-Month Avg. Volume	0.81M	7.05M
3-Month Volatility	29.21%	32.43%
Beta	0.70	0.78

Profitability

Return on Equity (TTM)

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.

PANW

16.59%

Software Industry

Max: 66.28%
Q3: 21.28%
Median: 9.33%
Q1: -8.77%
Min: -48.16%

PANW’s Return on Equity of 16.59% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

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.

PANW

12.30%

Software Industry

Max: 51.92%
Q3: 19.23%
Median: 6.98%
Q1: -7.14%
Min: -41.00%

PANW’s Net Profit Margin of 12.30% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

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

Operating Profit Margin (TTM)

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.

PANW

13.48%

Software Industry

Max: 60.40%
Q3: 21.25%
Median: 9.90%
Q1: -4.97%
Min: -43.50%

PANW’s Operating Profit Margin of 13.48% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

Symbol	NTES	PANW
Return on Equity (TTM)	24.25%	16.59%
Return on Assets (TTM)	17.31%	5.22%
Net Profit Margin (TTM)	31.19%	12.30%
Operating Profit Margin (TTM)	31.43%	13.48%
Gross Profit Margin (TTM)	63.17%	73.41%

Financial Strength

Current Ratio (MRQ)

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.

PANW

0.94

Software Industry

Max: 4.29
Q3: 2.37
Median: 1.40
Q1: 1.03
Min: 0.25

PANW’s Current Ratio of 0.94 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

NTES vs. PANW: A comparison of their Current Ratio (MRQ) against their respective Entertainment and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

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.

PANW

0.00

Software Industry

Max: 2.16
Q3: 0.86
Median: 0.31
Q1: 0.00
Min: 0.00

PANW’s Debt-to-Equity Ratio of 0.00 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

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.

PANW

532.90

Software Industry

Max: 89.65
Q3: 32.64
Median: 1.00
Q1: -9.84
Min: -71.23

With an Interest Coverage Ratio of 532.90, PANW demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.

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

Financial Strength at a Glance

Symbol	NTES	PANW
Current Ratio (MRQ)	3.23	0.94
Quick Ratio (MRQ)	3.10	0.88
Debt-to-Equity Ratio (MRQ)	0.08	0.00
Interest Coverage Ratio (TTM)	161.13	532.90

Growth

Revenue Growth

NTES vs. PANW: 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

NTES vs. PANW: 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)

NTES

1.90%

Entertainment Industry

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

With a Dividend Yield of 1.90%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

PANW

0.00%

Software Industry

Max: 0.22%
Q3: 0.11%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

PANW 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 vs. PANW: A comparison of their Dividend Yield (TTM) against their respective Entertainment and Software industry benchmarks.

Dividend Payout Ratio (TTM)

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.

PANW

0.00%

Software Industry

Max: 3.29%
Q3: 2.41%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

PANW 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 vs. PANW: A comparison of their Dividend Payout Ratio (TTM) against their respective Entertainment and Software industry benchmarks.

Dividend at a Glance

Symbol	NTES	PANW
Dividend Yield (TTM)	1.90%	0.00%
Dividend Payout Ratio (TTM)	36.90%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

NTES

19.44

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

PANW

120.12

Software Industry

Max: 145.74
Q3: 94.88
Median: 45.35
Q1: 26.66
Min: 8.80

A P/E Ratio of 120.12 places PANW in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

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

Price-to-Sales Ratio (TTM)

NTES

6.06

Entertainment Industry

Max: 12.34
Q3: 7.67
Median: 5.06
Q1: 2.72
Min: 0.67

NTES’s P/S Ratio of 6.06 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.

PANW

14.77

Software Industry

Max: 25.67
Q3: 13.68
Median: 8.28
Q1: 4.95
Min: 0.90

PANW’s P/S Ratio of 14.77 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

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

Price-to-Book Ratio (MRQ)

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.

PANW

14.82

Software Industry

Max: 30.67
Q3: 14.92
Median: 8.52
Q1: 3.89
Min: 0.38

PANW’s P/B Ratio of 14.82 is within the conventional range for the Software 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 vs. PANW: A comparison of their Price-to-Book Ratio (MRQ) against their respective Entertainment and Software industry benchmarks.

Valuation at a Glance

Symbol	NTES	PANW
Price-to-Earnings Ratio (TTM)	19.44	120.12
Price-to-Sales Ratio (TTM)	6.06	14.77
Price-to-Book Ratio (MRQ)	4.06	14.82
Price-to-Free Cash Flow Ratio (TTM)	15.02	45.39