Black Knight Financial Services (BKFS) versus NetEase (NTES) Critical Analysis
Black Knight Financial Services (NYSE: BKFS) and NetEase (NASDAQ:NTES) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.
This is a breakdown of current recommendations for Black Knight Financial Services and NetEase, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Black Knight Financial Services||0||1||7||0||2.88|
Black Knight Financial Services presently has a consensus price target of $46.40, indicating a potential upside of 5.33%. NetEase has a consensus price target of $301.69, indicating a potential upside of 11.64%. Given NetEase’s higher possible upside, analysts clearly believe NetEase is more favorable than Black Knight Financial Services.
Volatility and Risk
Black Knight Financial Services has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, NetEase has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.
NetEase pays an annual dividend of $3.69 per share and has a dividend yield of 1.4%. Black Knight Financial Services does not pay a dividend. NetEase pays out 25.1% of its earnings in the form of a dividend.
Insider & Institutional Ownership
99.9% of Black Knight Financial Services shares are owned by institutional investors. Comparatively, 50.4% of NetEase shares are owned by institutional investors. 30.9% of Black Knight Financial Services 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 & Earnings
This table compares Black Knight Financial Services and NetEase’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Black Knight Financial Services||$1.05 billion||2.81||$356.90 million||$0.60||73.42|
Black Knight Financial Services has higher revenue and earnings than NetEase. NetEase is trading at a lower price-to-earnings ratio than Black Knight Financial Services, indicating that it is currently the more affordable of the two stocks.
This table compares Black Knight Financial Services and NetEase’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Black Knight Financial Services||3.96%||8.29%||4.28%|
NetEase beats Black Knight Financial Services on 9 of the 14 factors compared between the two stocks.
Black Knight Financial Services Company Profile
Black Knight Financial Services, Inc. is a holding company. The Company, through its subsidiaries, provides integrated technology, workflow automation, and data and analytics to the mortgage and real estate industries. The Company’s segments include Technology, and Data and Analytics. The Company’s Technology segment offers software and hosting solutions that support loan servicing, loan origination and settlement services. The Technology segment provides applications and services, such as servicing technology and origination technology. Its Data and Analytics segment offers data and analytics solutions to the mortgage, real estate and capital markets industries. These solutions include property ownership data, lien data, servicing data, automated valuation models, collateral risk scores, prepayment and default models, lead generation and other data solutions.
NetEase Company Profile
NetEase, Inc. (NetEase) is a technology company. The Company operates an interactive online community in China and is a provider of Chinese language content and services through its online games, Internet media, e-mail, e-commerce and other businesses. The Company operates through three segments: Online Game Services; Advertising Services, and E-mail, E-commerce and Others. Its online games business primarily focuses on offering personal computer (PC)-client massively multi-player online role-playing games (PC-client MMORPGs), as well as mobile games to the Chinese market. The NetEase Websites provide Internet users with Chinese language online services centered over three core service categories, which include content, community and communication. Its online advertising offerings include banner advertising, direct e-mail, sponsored special events, games, contests and other activities. It offers free and fee-based premium e-mail services to its individual users and corporate users.
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