Head to Head Comparison: LiveWorld (OTCMKTS:LVWD) and NetEase (OTCMKTS:NTES)

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

Risk and Volatility

LiveWorld has a beta of 2.35, suggesting that its stock price is 135% more volatile than the S&P 500. Comparatively, NetEase has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Dividends

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

Analyst Ratings

This is a summary of recent recommendations and price targets for LiveWorld and NetEase, as reported by MarketBeat.com.

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

NetEase has a consensus target price of $277.05, indicating a potential upside of 14.03%. Given NetEase’s higher possible upside, analysts clearly believe NetEase is more favorable than LiveWorld.

Insider & Institutional Ownership

45.9% of NetEase shares are owned by institutional investors. 16.3% of LiveWorld shares are owned by insiders. Comparatively, 54.7% of NetEase shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
LiveWorld -12.13% -100.83% -44.27%
NetEase 10.94% 17.05% 9.35%

Valuation and Earnings

This table compares LiveWorld and NetEase’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LiveWorld $7.71 million 0.07 -$640,000.00 N/A N/A
NetEase $9.77 billion 3.27 $930.91 million $6.87 35.37

NetEase has higher revenue and earnings than LiveWorld.

Summary

NetEase beats LiveWorld on 11 of the 13 factors compared between the two stocks.

LiveWorld Company Profile

LiveWorld, Inc. provides social media solutions for global brands. The company is involved in developing strategy, creating and publishing content, engaging customers, moderating content, managing crises, and gleaning insight from social media. It offers engagement services, including social architecture, audit, and competitive analysis; content programming plans and authoring; day-to-day online engagement and community management; social media crisis management; highlights and custom reporting; and strategy consulting services. The company also provides content moderation services, such as moderation plans and guidelines, moderator selection and training, hourly content moderation, moderation management, moderation program model, and highlights and custom reporting. In addition, it offers insight services comprising setup, customization, training, and support; management, tagging, and analysis; and listening and monitoring of the social Web. Further, it provides listening services that include brand monitoring, social Web listening, market research listening programs, customizable listening track offerings, human management and analysis, and real-time monitoring or 30-day rear-view listening reports. Additionally, the company offers LiveEngage, a social content marketing suite that enables brand managers or customer support agents to directly respond to escalated content; LiveMod, a content moderation software enables human moderators to accept, reject, and escalate content in context; and LiveInsight software, an analytics and insights solution designed to engage and scale human review and analysis. It serves various industries, including retail, consumer packaged goods, pharmaceutical, financial and travel services, healthcare, automotive, technology, and media and entertainment. The company was formerly known as Talk City, Inc. and changed its name to Liveworld, Inc. in May 2001. Liveworld, Inc. was founded in 1996 and is headquartered in San Jose, California.

NetEase Company Profile

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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