Emerald Expositions Events (NYSE: EEX) and NetEase (NASDAQ:NTES) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Dividends

Emerald Expositions Events pays an annual dividend of $0.29 per share and has a dividend yield of 1.8%. NetEase pays an annual dividend of $0.91 per share and has a dividend yield of 0.4%. Emerald Expositions Events pays out 26.1% of its earnings in the form of a dividend. NetEase pays out 7.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NetEase has raised its dividend for 2 consecutive years.

Profitability

This table compares Emerald Expositions Events and NetEase’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emerald Expositions Events 29.36% 12.73% 5.87%
NetEase 11.49% 14.38% 9.33%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emerald Expositions Events 0 4 0 0 2.00
NetEase 1 4 10 0 2.60

Emerald Expositions Events currently has a consensus target price of $20.50, suggesting a potential upside of 30.49%. NetEase has a consensus target price of $322.50, suggesting a potential upside of 43.54%. Given NetEase’s stronger consensus rating and higher possible upside, analysts plainly believe NetEase is more favorable than Emerald Expositions Events.

Risk & Volatility

Emerald Expositions Events has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, NetEase has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Insider & Institutional Ownership

35.1% of Emerald Expositions Events shares are owned by institutional investors. Comparatively, 45.9% of NetEase shares are owned by institutional investors. 5.3% of Emerald Expositions Events shares are owned by insiders. Comparatively, 54.7% of NetEase shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Emerald Expositions Events and NetEase’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Emerald Expositions Events $341.70 million 3.35 $81.80 million $1.11 14.15
NetEase $8.32 billion 3.55 $1.65 billion $12.41 18.10

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

Summary

NetEase beats Emerald Expositions Events on 15 of the 17 factors compared between the two stocks.

Emerald Expositions Events Company Profile

Emerald Expositions Events, Inc. operates business-to-business (B2B) trade shows in the United States. The company operates trade shows in various industry sectors, including gift, home and general merchandise; sports; design and construction; technology; jewelry; and others comprising photography, food, healthcare, industrials, and military. It also operates events across various formats, such as B2B conferences, hosted buyer events, B2C events, summits, awards, and luxury private sales. The company was founded in 2013 and is headquartered in San Juan Capistrano, California.

NetEase Company Profile

NetEase, Inc. operates an interactive online community in the People's Republic of China. The company operates through Online Game Services; E-Commerce; Advertising Services; and Email and Others segments. 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, as well as NetEase News App and NetEase Websites, which provide Internet users with Chinese language-based online services that are centered around content and interactive community. In addition, it provides online advertising services comprising banner advertising, channel sponsorships, direct email, interactive media-rich sites, sponsored special events, games, contests, and other activities; and email services to individual and corporate users. Further, NetEase, Inc. offers online services, such as CC, a live video streaming platform; Cloud Music, a music streaming platform; Wangyibao, a payment platform; EaseRead, an e-reading platform; NetEase Cloud Classroom, an online education platform; and Youdao Dictionary, an e-dictionary services 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 based in Beijing, the People's Republic of China.

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