NetEase (NASDAQ:NTES) & Code Chain New Continent (NASDAQ:CCNC) Head-To-Head Analysis

Code Chain New Continent (NASDAQ:CCNC) and NetEase (NASDAQ:NTES) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Volatility and Risk

Code Chain New Continent has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, NetEase has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Valuation & Earnings

This table compares Code Chain New Continent and NetEase”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Code Chain New Continent	$25.03 million	0.11	-$26.97 million	($4.81)	-0.32
NetEase	$116.60 billion	0.67	$4.83 billion	$7.26	16.77

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

Institutional & Insider Ownership

34.7% of Code Chain New Continent shares are owned by institutional investors. Comparatively, 11.1% of NetEase shares are owned by institutional investors. 16.3% of Code Chain New Continent 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, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Code Chain New Continent and NetEase, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Code Chain New Continent	0	0	0	0	0.00
NetEase	0	3	8	0	2.73

NetEase has a consensus price target of $159.25, indicating a potential upside of 30.77%. Given NetEase’s stronger consensus rating and higher probable upside, analysts clearly believe NetEase is more favorable than Code Chain New Continent.

Profitability

This table compares Code Chain New Continent and NetEase’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Code Chain New Continent	N/A	-16.61%	-10.20%
NetEase	27.86%	19.50%	14.45%

Summary

NetEase beats Code Chain New Continent on 12 of the 14 factors compared between the two stocks.

About Code Chain New Continent

Code Chain New Continent Limited, through its subsidiaries, focuses on research, development, and application of Internet of Things (IoT) and electronic token digital door signs. It creates digital door signs which is the digitalization of a physical store by means of animation and other technical services; and offers electronic tokens, that are used for purchasing virtual real estate properties. The company also offers Wuge Manor, a game that combines Internet of Things and e-commerce based on code chain platform that provides players with access to vendors and business owners in approximately 100 cities in China. Code Chain New Continent Limited is based in Chengdu, China.

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.