NetEase (NASDAQ:NTES – Get Free Report) and PodcastOne (NASDAQ:PODC – Get Free Report) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.
Insider & Institutional Ownership
11.1% of NetEase shares are owned by institutional investors. Comparatively, 2.9% of PodcastOne shares are owned by institutional investors. 54.7% of NetEase shares are owned by company insiders. Comparatively, 7.8% of PodcastOne shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
NetEase has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, PodcastOne has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NetEase | 0 | 3 | 7 | 0 | 2.70 |
| PodcastOne | 2 | 0 | 0 | 0 | 1.00 |
NetEase currently has a consensus target price of $163.62, suggesting a potential upside of 37.71%. Given NetEase’s stronger consensus rating and higher probable upside, analysts clearly believe NetEase is more favorable than PodcastOne.
Valuation & Earnings
This table compares NetEase and PodcastOne”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NetEase | $16.11 billion | 4.72 | $4.83 billion | $7.26 | 16.37 |
| PodcastOne | $61.67 million | 1.03 | -$2.64 million | ($0.12) | -17.48 |
NetEase has higher revenue and earnings than PodcastOne. PodcastOne is trading at a lower price-to-earnings ratio than NetEase, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NetEase and PodcastOne’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NetEase | 27.86% | 19.50% | 14.45% |
| PodcastOne | -5.01% | -17.56% | -10.97% |
Summary
NetEase beats PodcastOne on 13 of the 14 factors compared between the two stocks.
About NetEase
NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments. It develops and operates PC and mobile games, as well as offers games licensed from other game developers. The company's products and services include Youdao Dictionary, an online knowledge tool; Youdao Translation, a tool specifically designed to support translation needs of business and leisure travelers; U-Dictionary, an online dictionary and translation app; Youdao Kids' Dictionary, a smart and fun tool; smart devices, such as Youdao Dictionary Pen, Youdao Smart Learning Pad, Youdao Listening Pod, Youdao Smart Light, Youdao Pocket Translator, and Youdao Super Dictionary; online courses; interactive learning apps; and education digitalization solutions, such as Youdao Smart Learning Terminal, a device that automates paper-based homework processing; Youdao Smart Cloud, a cloud-based platform that allows third-party app developers, smart device brands, and manufacturers to the company's OCR capabilities; and Youdao Sports, a sports-centric educational system. Its products and services also include NetEase Cloud Music, a music streaming platform; Yanxuan, an e-commerce platform, which sells private label products; www.163.com portal and related mobile app, Wangyi Xinwen, which deliver information such as news, sports events, technology, fashion trends, and online entertainment; NetEase Mail, an email service; NetEase CC Live streaming, a live streaming platform with a focus on game broadcasting; and NetEase Pay, a payment platform. The company was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. NetEase, Inc. was founded in 1997 and is headquartered in Hangzhou, the People's Republic of China.
About PodcastOne
PodcastOne, Inc. operates as a podcast platform and publisher. The company offers its content to audiences through podcasting distribution platforms, including its website, Apple Podcasts, Spotify, Amazon Music, and others. It also produces vodcasts, branded podcasts, merchandise, and live events. In addition, the company builds, owns, and operates LaunchPadOne, a self-publishing podcast platform. The company was formerly known as Courtside Group, Inc. and changed its name to PodcastOne, Inc. in September 2023. PodcastOne, Inc. was founded in 2013 and is based in Beverly Hills, California. PodcastOne, Inc. is a subsidiary of LiveOne, Inc.
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