Analyzing FreeCast (Direct Listing) (NASDAQ:CAST) and NetEase (NASDAQ:NTES)

NetEase (NASDAQ:NTES) and FreeCast (Direct Listing) (NASDAQ:CAST) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Analyst Ratings

This is a breakdown of current ratings for NetEase and FreeCast (Direct Listing), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetEase	1	2	6	0	2.56
FreeCast (Direct Listing)	1	1	1	0	2.00

NetEase presently has a consensus price target of $159.86, suggesting a potential upside of 30.89%. FreeCast (Direct Listing) has a consensus price target of $6.00, suggesting a potential upside of 383.87%. Given FreeCast (Direct Listing)’s higher possible upside, analysts plainly believe FreeCast (Direct Listing) is more favorable than NetEase.

Earnings & Valuation

This table compares NetEase and FreeCast (Direct Listing)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NetEase	$16.11 billion	4.86	$4.83 billion	$7.26	16.82
FreeCast (Direct Listing)	$710,000.00	88.70	-$13.05 million	($0.55)	-2.25

NetEase has higher revenue and earnings than FreeCast (Direct Listing). FreeCast (Direct Listing) is trading at a lower price-to-earnings ratio than NetEase, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

11.1% of NetEase shares are held by institutional investors. 54.7% of NetEase shares are held by insiders. Comparatively, 53.3% of FreeCast (Direct Listing) shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares NetEase and FreeCast (Direct Listing)’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%
FreeCast (Direct Listing)	N/A	N/A	N/A

Summary

NetEase beats FreeCast (Direct Listing) on 10 of the 12 factors compared between the two stocks.

About NetEase

NetEase, Inc. is a China-based internet technology company best known for developing and publishing online games. Its portfolio includes titles such as Fantasy Westward Journey and Identity V, as well as games for mobile and other platforms. The company serves players in China and international markets. NetEase also operates NetEase Cloud Music, a music streaming and social platform, and Youdao, which provides digital learning services and education technology products. Its businesses span game development and publishing, music, and online learning.

About FreeCast (Direct Listing)

FreeCast, Inc. is a media and technology company focused on simplifying access to digital television and streaming content. Its platform brings together live television, on-demand programming, free ad-supported streaming television channels and other internet-based content in a unified viewing experience. The company operates products and services designed to help consumers discover, organize and watch programming from multiple sources through connected televisions, mobile devices and other internet-enabled platforms.