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

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Here’s a clear look at NTES and PSTG, 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, PSTG is a standard domestic listing.

SymbolNTESPSTG
Company NameNetEase, Inc.Pure Storage, Inc.
CountryChinaUnited States
GICS SectorCommunication ServicesInformation Technology
GICS IndustryEntertainmentTechnology Hardware, Storage & Peripherals
Market Capitalization94.99 billion USD28.16 billion USD
ExchangeNasdaqGSNYSE
Listing DateJune 30, 2000October 6, 2015
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of NTES and PSTG 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. PSTG: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolNTESPSTG
5-Day Price Return-0.58%-1.23%
13-Week Price Return11.31%45.55%
26-Week Price Return47.44%65.50%
52-Week Price Return60.43%69.52%
Month-to-Date Return-1.30%7.99%
Year-to-Date Return68.17%36.43%
10-Day Avg. Volume0.71M2.96M
3-Month Avg. Volume0.81M3.00M
3-Month Volatility29.21%73.55%
Beta0.701.22

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.

PSTG

10.55%

Technology Hardware, Storage & Peripherals Industry

Max
56.93%
Q3
27.52%
Median
9.18%
Q1
5.14%
Min
-1.04%

PSTG’s Return on Equity of 10.55% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.

NTES vs. PSTG: A comparison of their Return on Equity (TTM) against their respective Entertainment and Technology Hardware, Storage & Peripherals 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.

PSTG

4.15%

Technology Hardware, Storage & Peripherals Industry

Max
16.15%
Q3
7.95%
Median
4.80%
Q1
2.20%
Min
-0.29%

PSTG’s Net Profit Margin of 4.15% is aligned with the median group of its peers in the Technology Hardware, Storage & Peripherals industry. This indicates its ability to convert revenue into profit is typical for the sector.

NTES vs. PSTG: A comparison of their Net Profit Margin (TTM) against their respective Entertainment and Technology Hardware, Storage & Peripherals 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.

PSTG

2.26%

Technology Hardware, Storage & Peripherals Industry

Max
20.70%
Q3
10.74%
Median
6.27%
Q1
4.07%
Min
1.97%

PSTG’s Operating Profit Margin of 2.26% is in the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

NTES vs. PSTG: A comparison of their Operating Profit Margin (TTM) against their respective Entertainment and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

SymbolNTESPSTG
Return on Equity (TTM)24.25%10.55%
Return on Assets (TTM)17.31%3.56%
Net Profit Margin (TTM)31.19%4.15%
Operating Profit Margin (TTM)31.43%2.26%
Gross Profit Margin (TTM)63.17%69.17%

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.

PSTG

1.65

Technology Hardware, Storage & Peripherals Industry

Max
3.37
Q3
2.04
Median
1.41
Q1
0.98
Min
0.11

PSTG’s Current Ratio of 1.65 aligns with the median group of the Technology Hardware, Storage & Peripherals industry, indicating that its short-term liquidity is in line with its sector peers.

NTES vs. PSTG: A comparison of their Current Ratio (MRQ) against their respective Entertainment and Technology Hardware, Storage & Peripherals 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.

PSTG

0.00

Technology Hardware, Storage & Peripherals Industry

Max
1.54
Q3
0.85
Median
0.32
Q1
0.11
Min
0.00

Falling into the lower quartile for the Technology Hardware, Storage & Peripherals industry, PSTG’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

NTES vs. PSTG: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Entertainment and Technology Hardware, Storage & Peripherals 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.

PSTG

-2.95

Technology Hardware, Storage & Peripherals Industry

Max
143.63
Q3
76.01
Median
19.47
Q1
5.91
Min
-23.93

PSTG has a negative Interest Coverage Ratio of -2.95. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

NTES vs. PSTG: A comparison of their Interest Coverage Ratio (TTM) against their respective Entertainment and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

SymbolNTESPSTG
Current Ratio (MRQ)3.231.65
Quick Ratio (MRQ)3.101.42
Debt-to-Equity Ratio (MRQ)0.080.00
Interest Coverage Ratio (TTM)161.13-2.95

Growth

Revenue Growth

NTES vs. PSTG: 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. PSTG: 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.

PSTG

0.00%

Technology Hardware, Storage & Peripherals Industry

Max
4.33%
Q3
3.29%
Median
1.76%
Q1
0.00%
Min
0.00%

PSTG 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. PSTG: A comparison of their Dividend Yield (TTM) against their respective Entertainment and Technology Hardware, Storage & Peripherals 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.

PSTG

0.00%

Technology Hardware, Storage & Peripherals Industry

Max
142.87%
Q3
77.17%
Median
40.90%
Q1
3.87%
Min
0.00%

PSTG 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. PSTG: A comparison of their Dividend Payout Ratio (TTM) against their respective Entertainment and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

SymbolNTESPSTG
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.

PSTG

200.00

Technology Hardware, Storage & Peripherals Industry

Max
43.10
Q3
28.67
Median
19.23
Q1
15.53
Min
9.46

At 200.00, PSTG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Technology Hardware, Storage & Peripherals industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

NTES vs. PSTG: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Entertainment and Technology Hardware, Storage & Peripherals 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.

PSTG

8.31

Technology Hardware, Storage & Peripherals Industry

Max
5.63
Q3
3.18
Median
1.10
Q1
0.49
Min
0.04

With a P/S Ratio of 8.31, PSTG trades at a valuation that eclipses even the highest in the Technology Hardware, Storage & Peripherals industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

NTES vs. PSTG: A comparison of their Price-to-Sales Ratio (TTM) against their respective Entertainment and Technology Hardware, Storage & Peripherals 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.

PSTG

13.94

Technology Hardware, Storage & Peripherals Industry

Max
13.94
Q3
6.87
Median
1.88
Q1
0.94
Min
0.32

PSTG’s P/B Ratio of 13.94 is in the upper tier for the Technology Hardware, Storage & Peripherals industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

NTES vs. PSTG: A comparison of their Price-to-Book Ratio (MRQ) against their respective Entertainment and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

SymbolNTESPSTG
Price-to-Earnings Ratio (TTM)19.44200.00
Price-to-Sales Ratio (TTM)6.068.31
Price-to-Book Ratio (MRQ)4.0613.94
Price-to-Free Cash Flow Ratio (TTM)15.0250.68