Head to Head Review: Collectors Universe (NASDAQ:CLCT) vs. NetEase (NASDAQ:NTES)

Collectors Universe (NASDAQ:CLCT) and NetEase (NASDAQ:NTES) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Insider and Institutional Ownership

68.1% of Collectors Universe shares are owned by institutional investors. Comparatively, 47.8% of NetEase shares are owned by institutional investors. 2.7% of Collectors Universe shares are owned by company insiders. Comparatively, 54.7% of NetEase shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Collectors Universe has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, NetEase has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Collectors Universe and NetEase, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Collectors Universe 0 0 0 0 N/A
NetEase 0 1 11 0 2.92

NetEase has a consensus target price of $399.97, suggesting a potential upside of 7.45%. Given NetEase’s higher possible upside, analysts plainly believe NetEase is more favorable than Collectors Universe.

Profitability

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

Net Margins Return on Equity Return on Assets
Collectors Universe 14.02% 50.87% 23.46%
NetEase 33.53% 37.56% 21.54%

Dividends

Collectors Universe pays an annual dividend of $0.70 per share and has a dividend yield of 3.4%. NetEase pays an annual dividend of $4.07 per share and has a dividend yield of 1.1%. NetEase pays out 27.7% of its earnings in the form of a dividend. NetEase has increased its dividend for 1 consecutive years.

Valuation & Earnings

This table compares Collectors Universe 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
Collectors Universe $72.45 million 2.63 $9.98 million N/A N/A
NetEase $8.51 billion 5.60 $3.09 billion $14.67 25.37

NetEase has higher revenue and earnings than Collectors Universe.

Summary

NetEase beats Collectors Universe on 8 of the 15 factors compared between the two stocks.

Collectors Universe Company Profile

Collectors Universe, Inc. provides authentication and grading services to dealers and collectors of coins, trading cards, event tickets, autographs, and historical and sports memorabilia in the United States. It operates through three segments: Coins, Trading Cards and Autographs, and Other High-End Collectibles. The company also publishes magazines that provide market prices and information for collectibles and high-value assets that are accessible on its Websites; operates an online market for graded collectible coins for dealers on subscription basis; and promotes, manages, and operates the Long Beach Coin shows. It serves dealers, collectors, retail buyers, and sellers of the collectibles. Collectors Universe, Inc. was founded in 1986 and is headquartered in Santa Ana, 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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