Analyzing SilverSun Technologies (NASDAQ:SSNT) & NetEase (NTES)

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NetEase (NASDAQ:NTES) and SilverSun Technologies (NASDAQ:SSNT) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Earnings and Valuation

This table compares NetEase and SilverSun Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NetEase $8.32 billion 3.49 $1.65 billion $12.41 17.80
SilverSun Technologies $34.85 million 0.47 -$480,000.00 $0.12 30.23

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

Profitability

This table compares NetEase and SilverSun Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NetEase 11.49% 14.57% 9.22%
SilverSun Technologies -1.84% 7.97% 3.27%

Insider and Institutional Ownership

45.8% of NetEase shares are owned by institutional investors. Comparatively, 6.8% of SilverSun Technologies shares are owned by institutional investors. 54.7% of NetEase shares are owned by insiders. Comparatively, 47.1% of SilverSun Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

NetEase pays an annual dividend of $2.43 per share and has a dividend yield of 1.1%. SilverSun Technologies does not pay a dividend. NetEase pays out 19.6% of its earnings in the form of a dividend. NetEase has raised its dividend for 2 consecutive years.

Risk & Volatility

NetEase has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, SilverSun Technologies has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for NetEase and SilverSun Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NetEase 1 3 10 0 2.64
SilverSun Technologies 0 0 1 0 3.00

NetEase currently has a consensus price target of $321.82, suggesting a potential upside of 45.70%. SilverSun Technologies has a consensus price target of $7.00, suggesting a potential upside of 92.94%. Given SilverSun Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe SilverSun Technologies is more favorable than NetEase.

Summary

NetEase beats SilverSun Technologies on 13 of the 17 factors compared between the two stocks.

About NetEase

NetEase, Inc. operates an interactive online community in the People's Republic of China. The company operates through Online Game Services; E-Commerce; Advertising Services; and Email and Others segments. 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, as well as NetEase News App and NetEase Websites, which provide Internet users with Chinese language-based online services that are centered around content and interactive community. In addition, it provides online advertising services comprising banner advertising, channel sponsorships, direct email, interactive media-rich sites, sponsored special events, games, contests, and other activities; and email services to individual and corporate users. Further, NetEase, Inc. offers online services, such as CC, a live video streaming platform; Cloud Music, a music streaming platform; Wangyibao, a payment platform; EaseRead, an e-reading platform; NetEase Cloud Classroom, an online education platform; and Youdao Dictionary, an e-dictionary services 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 based in Beijing, the People's Republic of China.

About SilverSun Technologies

SilverSun Technologies, Inc. operates as a business application, technology, and consulting company. The company resells enterprise resource planning software for the financial accounting requirements, as well as offers associated training, technical support, and professional services. The company also publishes and markets MAPADOC, an electronic data interchange software through a network of resellers. In addition, the company resells warehouse management system software, which controls the movement and storage of materials; and offers customer relationship management and business intelligence products. Further, it provides managed services, data back-up, network maintenance and service upgrades, hosting, business continuity, cloud, email, and Web services. It serves small and medium-sized businesses that sell services and products to various end users, manufacturers, wholesalers, and distributors in the United States. The company was formerly known as Trey Resources, Inc. and changed its name to SilverSun Technologies, Inc. in June 2011. SilverSun Technologies, Inc. was founded in 1988 and is headquartered in East Hanover, New Jersey.

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