NetEase (NASDAQ:NTES – Get Free Report) and Red Violet (NASDAQ:RDVT – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for NetEase and Red Violet, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NetEase | 0 | 1 | 7 | 0 | 2.88 |
| Red Violet | 0 | 0 | 0 | 0 | 0.00 |
NetEase currently has a consensus price target of $119.38, suggesting a potential downside of 8.10%. Given NetEase’s stronger consensus rating and higher possible upside, equities analysts plainly believe NetEase is more favorable than Red Violet.
Profitability
This table compares NetEase and Red Violet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NetEase | 30.12% | 23.08% | 16.90% |
| Red Violet | 10.87% | 10.01% | 9.21% |
Volatility & Risk
NetEase has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Red Violet has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500.
Insider & Institutional Ownership
11.1% of NetEase shares are owned by institutional investors. Comparatively, 63.6% of Red Violet shares are owned by institutional investors. 54.7% of NetEase shares are owned by company insiders. Comparatively, 8.9% of Red Violet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares NetEase and Red Violet”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NetEase | $107.27 billion | 0.77 | $4.07 billion | $6.95 | 18.69 |
| Red Violet | $75.19 million | 8.64 | $7.00 million | $0.61 | 76.28 |
NetEase has higher revenue and earnings than Red Violet. NetEase is trading at a lower price-to-earnings ratio than Red Violet, indicating that it is currently the more affordable of the two stocks.
Summary
NetEase beats Red Violet on 10 of the 14 factors compared between the two stocks.
About NetEase
(Get Free Report)
NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments. It develops and operates PC and mobile games, as well as offers games licensed from other game developers. The company’s products and services include Youdao Dictionary, an online knowledge tool; Youdao Translation, a tool specifically designed to support translation needs of business and leisure travelers; U-Dictionary, an online dictionary and translation app; Youdao Kids’ Dictionary, a smart and fun tool; smart devices, such as Youdao Dictionary Pen, Youdao Smart Learning Pad, Youdao Listening Pod, Youdao Smart Light, Youdao Pocket Translator, and Youdao Super Dictionary; online courses; interactive learning apps; and education digitalization solutions, such as Youdao Smart Learning Terminal, a device that automates paper-based homework processing; Youdao Smart Cloud, a cloud-based platform that allows third-party app developers, smart device brands, and manufacturers to the company’s OCR capabilities; and Youdao Sports, a sports-centric educational system. Its products and services also include NetEase Cloud Music, a music streaming platform; Yanxuan, an e-commerce platform, which sells private label products; www.163.com portal and related mobile app, Wangyi Xinwen, which deliver information such as news, sports events, technology, fashion trends, and online entertainment; NetEase Mail, an email service; NetEase CC Live streaming, a live streaming platform with a focus on game broadcasting; and NetEase Pay, a payment platform. 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 Hangzhou, the People’s Republic of China.
About Red Violet
(Get Free Report)
Red Violet, Inc., a software and services company, specializes in proprietary technologies and applying analytical capabilities to deliver identity intelligence in the United States. It offers idiCORE, an investigative solution used to address various organizational challenges, which include due diligence, risk mitigation, identity authentication, fraud detection and prevention, customer acquisition, and regulatory compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, as well as helps professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, telecommunication companies, law enforcement and government agencies, collections, law, corporate security, and investigative firms. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective customers, distributors, resellers, strategic partners, and installed base of current customers, as well as through direct sales. The company was incorporated in 2017 and is headquartered in Boca Raton, Florida.
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