NetEase (NTES) vs. Liquidity Services (LQDT) Head-To-Head Comparison
NetEase (NASDAQ: NTES) and Liquidity Services (NASDAQ:LQDT) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Risk & Volatility
NetEase has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Liquidity Services has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
NetEase pays an annual dividend of $3.63 per share and has a dividend yield of 1.0%. Liquidity Services does not pay a dividend. NetEase pays out 23.9% of its earnings in the form of a dividend.
This is a breakdown of current ratings and recommmendations for NetEase and Liquidity Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NetEase currently has a consensus target price of $325.92, indicating a potential downside of 6.09%. Given NetEase’s stronger consensus rating and higher probable upside, research analysts clearly believe NetEase is more favorable than Liquidity Services.
Earnings and Valuation
This table compares NetEase and Liquidity Services’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NetEase||$5.50 billion||8.34||$1.67 billion||$15.22||22.80|
|Liquidity Services||$270.02 million||0.57||-$39.18 million||($1.24)||-3.87|
NetEase has higher revenue and earnings than Liquidity Services. Liquidity Services is trading at a lower price-to-earnings ratio than NetEase, indicating that it is currently the more affordable of the two stocks.
This table compares NetEase and Liquidity Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
50.4% of NetEase shares are owned by institutional investors. Comparatively, 66.6% of Liquidity Services shares are owned by institutional investors. 54.7% of NetEase shares are owned by insiders. Comparatively, 22.3% of Liquidity Services shares are owned by 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.
NetEase beats Liquidity Services on 14 of the 16 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 Liquidity Services
Liquidity Services, Inc. operates a network of e-commerce marketplaces that enable buyers and sellers to transact in an automated environment. The Company employs e-commerce marketplace solutions to manage, value and sell inventory and equipment for business and government clients. The Company’s marketplaces provide professional buyers access to a global supply of new, surplus and scrap assets presented with digital images and other relevant product information. Additionally, the Company enables its corporate and government sellers to enhance their financial return on assets offered for sale by providing a liquid marketplace and value-added services. The Company’s range of services include program management, valuation, asset management, reconciliation, Return to Vendor and Returns Management Authorization (RTV and RMA), refurbishment and recycling, fulfillment, marketing and sales, warehousing and transportation, buyer customer support, and compliance and risk mitigation.
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