Code Chain New Continent (NASDAQ:CCNC) versus NetEase (NASDAQ:NTES) Head-To-Head Review

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetEase	0	3	7	0	2.70
Code Chain New Continent	0	0	0	0	0.00

NetEase presently has a consensus price target of $160.57, suggesting a potential upside of 34.61%. Given NetEase’s stronger consensus rating and higher probable upside, research analysts plainly believe NetEase is more favorable than Code Chain New Continent.

Insider and Institutional Ownership

11.1% of NetEase shares are owned by institutional investors. Comparatively, 34.7% of Code Chain New Continent shares are owned by institutional investors. 54.7% of NetEase shares are owned by insiders. Comparatively, 16.3% of Code Chain New Continent 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 & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NetEase	$16.11 billion	4.74	$4.83 billion	$7.26	16.43
Code Chain New Continent	$25.03 million	0.11	-$26.97 million	($4.81)	-0.32

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.

Profitability

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

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

Risk & Volatility

NetEase has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Code Chain New Continent has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Summary

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

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.

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.