Financial Analysis: NetEase (NASDAQ:NTES) & Protagenic Therapeutics (NASDAQ:PTIX)

Protagenic Therapeutics (OTCMKTS:PTIX) and NetEase (NASDAQ:NTES) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Dividends

NetEase pays an annual dividend of $2.75 per share and has a dividend yield of 1.1%. Protagenic Therapeutics does not pay a dividend. NetEase pays out 40.0% of its earnings in the form of a dividend.

Profitability

This table compares Protagenic Therapeutics and NetEase’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Protagenic Therapeutics N/A -3,445.12% -315.61%
NetEase 10.94% 17.05% 9.35%

Earnings and Valuation

This table compares Protagenic Therapeutics and NetEase’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Protagenic Therapeutics N/A N/A -$2.56 million N/A N/A
NetEase $9.77 billion 3.49 $930.91 million $6.87 37.83

NetEase has higher revenue and earnings than Protagenic Therapeutics.

Risk and Volatility

Protagenic Therapeutics has a beta of -7.52, indicating that its share price is 852% less volatile than the S&P 500. Comparatively, NetEase has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Protagenic Therapeutics and NetEase, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Protagenic Therapeutics 0 0 0 0 N/A
NetEase 0 2 9 0 2.82

NetEase has a consensus price target of $277.05, suggesting a potential upside of 6.61%. Given NetEase’s higher possible upside, analysts clearly believe NetEase is more favorable than Protagenic Therapeutics.

Institutional & Insider Ownership

46.0% of NetEase shares are held by institutional investors. 51.1% of Protagenic Therapeutics 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 will outperform the market over the long term.

Summary

NetEase beats Protagenic Therapeutics on 11 of the 12 factors compared between the two stocks.

About Protagenic Therapeutics

Protagenic Therapeutics, Inc., a biotechnology company, engages in the discovery and development of therapeutics to treat central nervous system disorders. Its lead drug candidate is PT00114, which is in clinical proof-of-concept studies for the treatment-resistant depression and/or post-traumatic stress disorder. The company is based in New York, New York.

About NetEase

NetEase, Inc. operates an interactive online community in the People's Republic of China. The company operates in four segments: Online Games Services, E-Commerce, Advertising Services, and Innovative Businesses and Other Services. It offers various games in a range of genres through mobile devices and PCs, including role-playing games, MMORPGs, battle arena games, simulation games, collectible card games, first-person shooter games, sandbox games, and other types of games to the Chinese market. The company also operates Kaola that sells imported maternity and baby products, skincare and cosmetics, and other general merchandise; and Yanxuan, which sells its private label products, including apparel, homeware, kitchenware, and other general merchandise. In addition, it operates NetEase News App and NetEase Websites, which provide Internet users with Chinese language-based online services that are centered around content and interactive community. Further, the company provides online advertising services comprising banner advertising, channel sponsorships, direct email, interactive media-rich sites, sponsored special events, games, contests, and other activities. Additionally, it offers online services, such as NetEase CC, a live video streaming platform; NetEase Cloud Music, a music-streaming platform; NetEase Youdao Education, an online platform offering educational content and solutions; EaseRead, an online reading platform; and NetEase Pay, a payment platform, as well as email services to individuals and corporates. 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 Beijing, the People's Republic of China.

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