HeartCore Enterprises (NASDAQ:HTCR) & NetEase (NASDAQ:NTES) Financial Survey

HeartCore Enterprises (NASDAQ:HTCR) 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 dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HeartCore Enterprises	-11.18%	76.78%	23.06%
NetEase	30.12%	23.08%	16.90%

Institutional and Insider Ownership

1.7% of HeartCore Enterprises shares are owned by institutional investors. Comparatively, 11.1% of NetEase shares are owned by institutional investors. 64.2% of HeartCore Enterprises shares are owned by company insiders. Comparatively, 54.7% of NetEase shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for HeartCore Enterprises and NetEase, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HeartCore Enterprises	0	0	0	0	0.00
NetEase	0	1	7	0	2.88

NetEase has a consensus target price of $119.38, suggesting a potential downside of 10.95%. Given NetEase’s stronger consensus rating and higher possible upside, analysts plainly believe NetEase is more favorable than HeartCore Enterprises.

Risk & Volatility

HeartCore Enterprises has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500. Comparatively, NetEase has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Valuation & Earnings

This table compares HeartCore Enterprises and NetEase”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HeartCore Enterprises	$28.95 million	0.41	-$1.48 million	($0.14)	-3.84
NetEase	$14.43 billion	5.89	$4.07 billion	$6.95	19.29

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

Dividends

HeartCore Enterprises pays an annual dividend of $0.02 per share and has a dividend yield of 3.7%. NetEase pays an annual dividend of $2.69 per share and has a dividend yield of 2.0%. HeartCore Enterprises pays out -14.3% of its earnings in the form of a dividend. NetEase pays out 38.7% 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. HeartCore Enterprises is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

NetEase beats HeartCore Enterprises on 10 of the 16 factors compared between the two stocks.

About HeartCore Enterprises

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also operates a digital transformation business that offers customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. In addition, it provides consulting services; and education, services, and support solutions. The company was founded in 2009 and is headquartered in Tokyo, Japan.

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.