Better Buy: Baidu vs. NetEase
Some of China's earliest publicly traded online companies are getting pretty cheap. Baidu (NASDAQ: BIDU) -- the country's leading search engine provider -- is hitting six-year lows this summer. The stock is now trading for just 16 times next year's projected earnings. NetEase (NASDAQ: NTES) is faring better, but the online gaming pioneer has surrendered nearly a third of its value since peaking two years ago. NetEase shares can be had at 19 times next year's profit target.
Stocks trading at forward earnings multiples in the high teens aren't automatically bargains, but Baidu and NetEase have historically traded at far juicier ratios. The two stocks have been big winners for long-term investors. Baidu has soared 1,130% and NetEase has skyrocketed 2,150% since being initially recommended in Motley Fool Rule Breakers in 2006 and 2004, respectively. Let's see which Chinese dot-com is the smarter investment for the year ahead.
Image source: NetEase.
Source Fool.com
