Financial Comparison: NetEase (NASDAQ:NTES) vs. Net Medical Xpress Solutions (OTCMKTS:NMXS)

NetEase (NASDAQ:NTES) and Net Medical Xpress Solutions (OTCMKTS:NMXS) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Risk & Volatility

NetEase has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Net Medical Xpress Solutions has a beta of -1.47, meaning that its stock price is 247% less volatile than the S&P 500.

Institutional and Insider Ownership

11.1% of NetEase shares are held by institutional investors. 54.7% of NetEase shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares NetEase and Net Medical Xpress Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NetEase	31.14%	24.09%	17.63%
Net Medical Xpress Solutions	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for NetEase and Net Medical Xpress Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetEase	0	2	6	0	2.75
Net Medical Xpress Solutions	0	0	0	0	0.00

NetEase presently has a consensus target price of $120.25, indicating a potential downside of 7.71%. Given Net Medical Xpress Solutions’ higher probable upside, analysts plainly believe Net Medical Xpress Solutions is more favorable than NetEase.

Earnings and Valuation

This table compares NetEase and Net Medical Xpress Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NetEase	$14.43 billion	5.72	$4.07 billion	$7.39	17.63
Net Medical Xpress Solutions	N/A	N/A	N/A	N/A	N/A

NetEase has higher revenue and earnings than Net Medical Xpress Solutions.

Summary

NetEase beats Net Medical Xpress Solutions on 9 of the 10 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 Net Medical Xpress Solutions

Net Medical Xpress Solutions, Inc. provides telemedicine solutions for hospitals, nursing homes, specialty hospitals, and other medical facilities. It provides services in the areas, such as teleneurology, teleneurosurgery, telecardiology, teleorthopedics, telewoundcare, and telenephrology. The company offers a Telemed telemedicine platform, a system used to build a customized telemedicine management system for clients; digital paper, development engine, single pane of glass software, FDA cleared image viewers, and integration connectivity with approximately 43 hospitals based EMR systems; and telemedicine video conferencing equipment and USB clinical tools. It also provides physicians; administrative services, such as credentialing, program management, and call center management; and integration services, including electronic prescription software, prior authorization software, laboratory and malpractice insurance, large scale provider scheduling, medical translation, and rounding services. In addition, the company offers staffing and recruiting services, and diagnostic and clinical services, as well as amazon cloud services. The company was formerly known as New Mexico Software, Inc. and changed its name to Net Medical Xpress Solutions, Inc. in January 2013. Net Medical Xpress Solutions, Inc. was founded in 1995 and is based in Albuquerque, New Mexico.