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

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

SymbolNTESWDC
Company NameNetEase, Inc.Western Digital Corporation
CountryChinaUnited States
GICS SectorCommunication ServicesInformation Technology
GICS IndustryEntertainmentTechnology Hardware, Storage & Peripherals
Market Capitalization83.01 billion USD26.24 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJune 30, 2000October 31, 1978
Security TypeADRCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolNTESWDC
5-Day Price Return0.66%-0.79%
13-Week Price Return9.59%49.13%
26-Week Price Return24.53%48.17%
52-Week Price Return41.03%53.77%
Month-to-Date Return0.17%-3.88%
Year-to-Date Return46.31%67.87%
10-Day Avg. Volume1.03M5.75M
3-Month Avg. Volume1.02M6.77M
3-Month Volatility24.86%30.47%
Beta0.661.73

Profitability

Return on Equity (TTM)

NTES

24.25%

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 24.25% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

WDC

21.49%

Technology Hardware, Storage & Peripherals Industry

Max
47.24%
Q3
29.40%
Median
9.11%
Q1
6.06%
Min
-0.79%

WDC’s Return on Equity of 21.49% 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. WDC: 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
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

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.

WDC

14.23%

Technology Hardware, Storage & Peripherals Industry

Max
13.86%
Q3
8.17%
Median
4.62%
Q1
3.65%
Min
-0.21%

WDC’s Net Profit Margin of 14.23% is exceptionally high, placing it well beyond the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

NTES vs. WDC: 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
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

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.

WDC

22.10%

Technology Hardware, Storage & Peripherals Industry

Max
17.80%
Q3
10.33%
Median
6.31%
Q1
4.86%
Min
2.53%

WDC’s Operating Profit Margin of 22.10% is exceptionally high, placing it well above the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

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

Profitability at a Glance

SymbolNTESWDC
Return on Equity (TTM)24.25%21.49%
Return on Assets (TTM)17.31%9.38%
Net Profit Margin (TTM)31.19%14.23%
Operating Profit Margin (TTM)31.43%22.10%
Gross Profit Margin (TTM)63.17%38.00%

Financial Strength

Current Ratio (MRQ)

NTES

3.23

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

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.

WDC

1.08

Technology Hardware, Storage & Peripherals Industry

Max
2.47
Q3
1.98
Median
1.40
Q1
1.26
Min
0.70

WDC’s Current Ratio of 1.08 falls into the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

NTES vs. WDC: 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
1.65
Q3
0.71
Median
0.14
Q1
0.04
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.

WDC

0.85

Technology Hardware, Storage & Peripherals Industry

Max
1.47
Q3
0.93
Median
0.32
Q1
0.19
Min
0.00

WDC’s Debt-to-Equity Ratio of 0.85 is typical for the Technology Hardware, Storage & Peripherals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

NTES vs. WDC: 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
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.

WDC

2.04

Technology Hardware, Storage & Peripherals Industry

Max
204.63
Q3
90.22
Median
21.70
Q1
6.79
Min
-23.93

In the lower quartile for the Technology Hardware, Storage & Peripherals industry, WDC’s Interest Coverage Ratio of 2.04 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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

Financial Strength at a Glance

SymbolNTESWDC
Current Ratio (MRQ)3.231.08
Quick Ratio (MRQ)3.100.84
Debt-to-Equity Ratio (MRQ)0.080.85
Interest Coverage Ratio (TTM)161.132.04

Growth

Revenue Growth

NTES vs. WDC: 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. WDC: 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

2.18%

Entertainment Industry

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

With a Dividend Yield of 2.18%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

WDC

0.00%

Technology Hardware, Storage & Peripherals Industry

Max
4.50%
Q3
3.66%
Median
1.90%
Q1
0.00%
Min
0.00%

WDC 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. WDC: 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
45.76%
Median
29.16%
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.

WDC

15.60%

Technology Hardware, Storage & Peripherals Industry

Max
142.87%
Q3
66.07%
Median
42.79%
Q1
0.00%
Min
0.00%

WDC’s Dividend Payout Ratio of 15.60% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolNTESWDC
Dividend Yield (TTM)2.18%0.00%
Dividend Payout Ratio (TTM)36.90%15.60%

Valuation

Price-to-Earnings Ratio (TTM)

NTES

16.94

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

WDC

13.66

Technology Hardware, Storage & Peripherals Industry

Max
43.16
Q3
27.56
Median
17.85
Q1
12.48
Min
6.21

WDC’s P/E Ratio of 13.66 is within the middle range for the Technology Hardware, Storage & Peripherals 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 vs. WDC: 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

5.28

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

NTES’s P/S Ratio of 5.28 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.

WDC

1.94

Technology Hardware, Storage & Peripherals Industry

Max
4.27
Q3
1.99
Median
0.93
Q1
0.45
Min
0.04

WDC’s P/S Ratio of 1.94 aligns with the market consensus for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

NTES vs. WDC: 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

4.09

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

NTES’s P/B Ratio of 4.09 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.

WDC

3.99

Technology Hardware, Storage & Peripherals Industry

Max
12.51
Q3
6.11
Median
1.73
Q1
1.01
Min
0.31

WDC’s P/B Ratio of 3.99 is within the conventional range for the Technology Hardware, Storage & Peripherals 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. WDC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Entertainment and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

SymbolNTESWDC
Price-to-Earnings Ratio (TTM)16.9413.66
Price-to-Sales Ratio (TTM)5.281.94
Price-to-Book Ratio (MRQ)4.093.99
Price-to-Free Cash Flow Ratio (TTM)13.0918.27