Analyzing NetEase (NASDAQ:NTES) and Destiny Media Technologies (OTCMKTS:DSNY)

Destiny Media Technologies (OTCMKTS:DSNY) and NetEase (NASDAQ:NTES) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Destiny Media Technologies and NetEase, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Destiny Media Technologies	0	0	0	0	N/A
NetEase	0	2	5	0	2.71

NetEase has a consensus price target of $123.86, indicating a potential upside of 38.22%. Given NetEase’s higher possible upside, analysts clearly believe NetEase is more favorable than Destiny Media Technologies.

Profitability

This table compares Destiny Media Technologies and NetEase’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Destiny Media Technologies	5.20%	6.62%	5.89%
NetEase	28.75%	24.19%	16.80%

Earnings and Valuation

This table compares Destiny Media Technologies and NetEase’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destiny Media Technologies	$4.03 million	2.14	$340,000.00	$0.01	87.98
NetEase	$105.27 billion	0.55	$4.14 billion	$6.45	13.89

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

Institutional and Insider Ownership

11.1% of NetEase shares are owned by institutional investors. 13.1% of Destiny Media Technologies shares are owned by insiders. Comparatively, 54.7% of NetEase shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Destiny Media Technologies has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, NetEase has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Summary

NetEase beats Destiny Media Technologies on 10 of the 13 factors compared between the two stocks.

About Destiny Media Technologies

Destiny Media Technologies Inc. develops technologies that enable the distribution of digital media files in a streaming or digital download format over the Internet. It offers Play MPE, an online platform that distributes promotional content, including broadcast quality audio, video, images, promotional information, and other digital content from record labels and artists to broadcasting professionals, music curators, and music reviewers to discover, download, broadcast, and review the content; Play MPE CASTER; Play MPE Quickshare provides a distribution tool for Play MPE customers to promote music; and Play MPE Player for music curators to review and download content through cloud-based player and mobile apps. The company also provides Music Tracking Radar, a digital tracking service that tracks and reports the number and times customers track is played; Clipstream, an online video platform for encoding, hosting, and reporting on video playback that can be embedded in third party websites or emails; and playback through its JavaScript codec engine. It markets and sells its products in the United States, Canada, Europe, Asia, South America, Africa, and Australia. The company was founded in 1991 and is based in Vancouver, Canada.

About NetEase

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.