NTES vs. CRM, ADBE, INTU, NOW, SNPS, CRWD, CDNS, SHOP, PLTR, and ADSK
Should you be buying NetEase stock or one of its competitors? The main competitors of NetEase include Salesforce (CRM), Adobe (ADBE), Intuit (INTU), ServiceNow (NOW), Synopsys (SNPS), CrowdStrike (CRWD), Cadence Design Systems (CDNS), Shopify (SHOP), Palantir Technologies (PLTR), and Autodesk (ADSK). These companies are all part of the "prepackaged software" industry.
Salesforce (NYSE:CRM) and NetEase (NASDAQ:NTES) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, media sentiment, risk, earnings and community ranking.
80.4% of Salesforce shares are held by institutional investors. Comparatively, 11.1% of NetEase shares are held by institutional investors. 3.2% of Salesforce shares are held by insiders. Comparatively, 54.7% of NetEase 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.
NetEase has a net margin of 28.75% compared to NetEase's net margin of 15.30%. Salesforce's return on equity of 24.19% beat NetEase's return on equity.
In the previous week, Salesforce had 45 more articles in the media than NetEase. MarketBeat recorded 48 mentions for Salesforce and 3 mentions for NetEase. Salesforce's average media sentiment score of 1.41 beat NetEase's score of 0.52 indicating that NetEase is being referred to more favorably in the news media.
NetEase has lower revenue, but higher earnings than Salesforce. NetEase is trading at a lower price-to-earnings ratio than Salesforce, indicating that it is currently the more affordable of the two stocks.
Salesforce pays an annual dividend of $0.40 per share and has a dividend yield of 0.2%. NetEase pays an annual dividend of $1.97 per share and has a dividend yield of 2.1%. Salesforce pays out 7.2% of its earnings in the form of a dividend. NetEase pays out 30.5% 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. NetEase has raised its dividend for 1 consecutive years. NetEase is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Salesforce has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, NetEase has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.
Salesforce received 2509 more outperform votes than NetEase when rated by MarketBeat users. Likewise, 82.68% of users gave Salesforce an outperform vote while only 69.02% of users gave NetEase an outperform vote.
Salesforce presently has a consensus target price of $292.79, indicating a potential upside of 20.86%. NetEase has a consensus target price of $125.71, indicating a potential upside of 33.21%. Given Salesforce's stronger consensus rating and higher possible upside, analysts plainly believe NetEase is more favorable than Salesforce.
Summary
Salesforce and NetEase tied by winning 11 of the 22 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NTES and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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