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; NetEase Cloud Music; and Innovative Businesses and Others segments. It develops and operates mobile and PC games; and offers games licensed from other developers. The company also provides live …
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Competitive advantage assessment
Key strengths
ROIC Sustainably Above PeersROIC at 87.0th percentile exceeds peers and WACC, demonstrating superior capital allocation.
Margins Stable Across CyclesOperating margin volatility is low (stability score 0.73), demonstrating pricing resilience across cycles.
The dashed ring is the peer median. Defense scores are percentile ranks
against peers, so 50 is roughly the typical company in this group.
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Where NTES ranks in Electronic Gaming & Multimedia
NetEase, Inc. ranks #1 of 26
scored companies in Electronic Gaming & Multimedia by moat score — the top 4%.
That makes it the widest moat in the group.
Moat scores for companies ranked near NTES in Electronic Gaming & Multimedia
Pricing power is the ability to raise prices without losing volume.
Cost Advantage
Score 94
· 15% of the moat score
A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.
Customer Stickiness
Score 96
· 15% of the moat score
Stickiness is what makes revenue repeat without being re-won every year.
Capital Efficiency
Score 87
· 18% of the moat score
Capital efficiency asks what the company earns on the money tied up in the business.
Resilience
Score 79
· 17% of the moat score
Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.
Scale & Market Position
Score 72
· 15% of the moat score
Scale matters only when it converts into economics.
NetEase, Inc. (NTES) scores 83 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #1 of 26 scored companies in Electronic Gaming & Multimedia, the top 4%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 25 companies in Electronic Gaming & Multimedia. Its strongest defense is Customer Stickiness (96/100) and its weakest is Pricing Power (72/100).
How does NetEase, Inc. compare with other Electronic Gaming & Multimedia companies?
NetEase, Inc. ranks #1 of 26 scored companies in Electronic Gaming & Multimedia by moat score. That is the widest moat in Electronic Gaming & Multimedia. The companies ranked closest are Electronic Arts Inc. (EA) at 79 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 25 companies in Electronic Gaming & Multimedia. The defenses are then weighted to produce the overall score out of 100.
Why is NetEase, Inc. scored with the Corporate Default template?
Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.
Which competitive defenses are measured for NetEase, Inc.?
The Corporate Default template measures 6 defenses, and NTES scores: Pricing Power (72), Cost Advantage (94), Customer Stickiness (96), Capital Efficiency (87), Resilience (79), Scale & Market Position (72). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
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