NetEase (NASDAQ:NTES) and CBIZ (NYSE:CBZ) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NetEase and CBIZ, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NetEase 0 2 10 0 2.83
CBIZ 0 0 1 0 3.00

NetEase presently has a consensus price target of $282.26, indicating a potential upside of 13.31%. Given NetEase’s higher possible upside, analysts clearly believe NetEase is more favorable than CBIZ.

Dividends

NetEase pays an annual dividend of $2.75 per share and has a dividend yield of 1.1%. CBIZ does not pay a dividend. NetEase pays out 40.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

45.2% of NetEase shares are owned by institutional investors. Comparatively, 87.4% of CBIZ shares are owned by institutional investors. 54.7% of NetEase shares are owned by company insiders. Comparatively, 7.4% of CBIZ shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares NetEase and CBIZ’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NetEase 11.86% 18.39% 9.97%
CBIZ 7.18% 10.89% 5.21%

Volatility & Risk

NetEase has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500.

Valuation & Earnings

This table compares NetEase and CBIZ’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NetEase $9.77 billion 3.35 $930.91 million $6.87 36.26
CBIZ $922.00 million 1.37 $61.57 million $1.09 21.11

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

Summary

NetEase beats CBIZ on 13 of the 16 factors compared between the two stocks.

NetEase Company Profile

NetEase, Inc. operates an interactive online community in the People's Republic of China. The company operates in four segments: Online Games Services, E-Commerce, Advertising Services, and Innovative Businesses and Other Services. It offers various games in a range of genres through mobile devices and PCs, including role-playing games, MMORPGs, battle arena games, simulation games, collectible card games, first-person shooter games, sandbox games, and other types of games to the Chinese market. The company also operates Kaola that sells imported maternity and baby products, skincare and cosmetics, and other general merchandise; and Yanxuan, which sells its private label products, including apparel, homeware, kitchenware, and other general merchandise. In addition, it operates NetEase News App and NetEase Websites, which provide Internet users with Chinese language-based online services that are centered around content and interactive community. Further, the company provides online advertising services comprising banner advertising, channel sponsorships, direct email, interactive media-rich sites, sponsored special events, games, contests, and other activities. Additionally, it offers online services, such as NetEase CC, a live video streaming platform; NetEase Cloud Music, a music-streaming platform; NetEase Youdao Education, an online platform offering educational content and solutions; EaseRead, an online reading platform; and NetEase Pay, a payment platform, as well as email services to individuals and corporates. 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 Beijing, the People's Republic of China.

CBIZ Company Profile

CBIZ, Inc. provides professional business services, products, and solutions that help its clients in managing finances and employees. It offers its services through three groups: Financial Services, Benefits and Insurance Services, and National Practices. The Financial Services group provides accounting and tax, government healthcare consulting, financial advisory, valuation, and risk and advisory services. The Benefits and Insurance Services group offers group health benefits consulting, payroll, property and casualty, and retirement plan services. The National Practices group provides managed networking and hardware, and health care consulting services. The company primarily serves small and midsized businesses, as well as individuals, governmental entities, and not-for-profit enterprises in the United States and parts of Canada. CBIZ, Inc. was founded in 1987 and is headquartered in Cleveland, Ohio.

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