NetEase (NASDAQ: NTES) and SS&C Technologies (NASDAQ:SSNC) are both large-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.
This is a breakdown of recent ratings for NetEase and SS&C Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional & Insider Ownership
51.3% of NetEase shares are owned by institutional investors. Comparatively, 85.4% of SS&C Technologies shares are owned by institutional investors. 54.7% of NetEase shares are owned by company insiders. Comparatively, 17.6% of SS&C Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
NetEase has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, SS&C Technologies has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
NetEase pays an annual dividend of $3.00 per share and has a dividend yield of 1.0%. SS&C Technologies pays an annual dividend of $0.28 per share and has a dividend yield of 0.5%. NetEase pays out 25.1% of its earnings in the form of a dividend. SS&C Technologies pays out 18.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This table compares NetEase and SS&C Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares NetEase and SS&C Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NetEase||$8.32 billion||4.70||$1.65 billion||$11.95||24.74|
|SS&C Technologies||$1.68 billion||6.36||$328.86 million||$1.54||33.47|
NetEase has higher revenue and earnings than SS&C Technologies. NetEase is trading at a lower price-to-earnings ratio than SS&C Technologies, indicating that it is currently the more affordable of the two stocks.
NetEase beats SS&C Technologies on 10 of the 17 factors compared between the two stocks.
NetEase, Inc. (NetEase) is a technology company. The Company operates an interactive online community in China and is a provider of Chinese language content and services through its online games, Internet media, e-mail, e-commerce and other businesses. The Company operates through three segments: Online Game Services; Advertising Services, and E-mail, E-commerce and Others. Its online games business primarily focuses on offering personal computer (PC)-client massively multi-player online role-playing games (PC-client MMORPGs), as well as mobile games to the Chinese market. The NetEase Websites provide Internet users with Chinese language online services centered over three core service categories, which include content, community and communication. Its online advertising offerings include banner advertising, direct e-mail, sponsored special events, games, contests and other activities. It offers free and fee-based premium e-mail services to its individual users and corporate users.
About SS&C Technologies
SS&C Technologies Holdings, Inc. is a holding company. The Company is a provider of software products and software-enabled services that allow financial services providers to automate complex business processes and manage their information processing requirements. The Company’s portfolio of software products and software-enabled services allows its clients to automate and integrate front-office functions, such as trading and modeling, middle-office functions, such as portfolio management and reporting, and back-office functions, such as accounting, performance measurement, reconciliation, reporting, processing and clearing. The Company provides its solutions across the globe to over 11,000 clients, principally within the institutional asset and wealth management, alternative investment management, financial advisory and financial institutions vertical markets. Its portfolio includes over 90 products and software-enabled services.
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