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PLAY vs SOHU

PLAY
Dave & Buster's Entertainment, Inc.
BEARISH
Price
$14.24
Market Cap
$494.7M
Sector
Communication Services
AI Confidence
95%
SOHU
Sohu.com Limited
BEARISH
Price
$15.70
Market Cap
$472.0M
Sector
Communication Services
AI Confidence
85%

Valuation

P/E Ratio
PLAY
--
SOHU
1.12
Forward P/E
PLAY
150.72
SOHU
-4.54
P/B Ratio
PLAY
5.43
SOHU
0.33
P/S Ratio
PLAY
0.24
SOHU
0.81
EV/EBITDA
PLAY
10.03
SOHU
11.79

Profitability

Gross Margin
PLAY
39.82%
SOHU
77.5%
Operating Margin
PLAY
3.08%
SOHU
-20.45%
Profit Margin
PLAY
-2.32%
SOHU
67.44%
ROE
PLAY
-41.1%
SOHU
35.81%
ROA
PLAY
1.9%
SOHU
-2.11%

Growth

Revenue Growth
PLAY
-0.9%
SOHU
5.6%
Earnings Growth
PLAY
--
SOHU
--

Financial Health

Debt/Equity
PLAY
39.09
SOHU
0.03
Current Ratio
PLAY
0.29
SOHU
2.9
Quick Ratio
PLAY
0.16
SOHU
2.62

Dividends

Dividend Yield
PLAY
--
SOHU
--
Payout Ratio
PLAY
0.0%
SOHU
0.0%

AI Verdict

PLAY BEARISH

The company exhibits severe financial distress, highlighted by a weak Piotroski F-Score of 2/9 and a critical liquidity crisis with a Current Ratio of 0.29. Extreme leverage is evident in the Debt/Equity ratio of 39.09, which, combined with negative ROE (-41.10%) and negative profit margins, suggests a high risk of insolvency. Despite a 'Buy' analyst recommendation and a low Price/Sales ratio, the fundamental data shows consistent earnings misses (0/4 beats in the last year) and a crashing YoY EPS growth of -150.7%.

Strengths
Low Price/Sales ratio (0.24) suggests the stock is cheap relative to revenue
Gross Margin remains healthy at 39.82%
Analyst target price ($18.88) provides a theoretical upside of ~32%
Risks
Severe liquidity risk with a Current Ratio of 0.29 and Quick Ratio of 0.16
Extreme financial leverage with a Debt/Equity ratio of 39.09
Consistent failure to meet earnings estimates (Average surprise -83.83% over last 4 quarters)
SOHU BEARISH

SOHU presents a classic 'value trap' scenario, characterized by a critically weak Piotroski F-Score of 2/9 and a bearish technical trend (10/100). While the stock appears absurdly cheap on a trailing P/E (1.12) and Price-to-Book (0.33) basis, the operational reality is grim, with a negative operating margin of -20.45% and a crashing YoY EPS growth of -76.2%. The massive discrepancy between the Graham Number ($122.7) and the current price reflects a market that has completely discounted the company's asset value due to deteriorating fundamental health and lack of growth.

Strengths
Extremely low Debt/Equity ratio (0.03)
Strong short-term liquidity with a Current Ratio of 2.90
Deeply undervalued relative to book value (P/B 0.33)
Risks
Severe operational decay indicated by Piotroski F-Score of 2/9
Negative Operating Margin (-20.45%) suggests core business is loss-making
Negative Forward P/E indicates expected future earnings losses

Compare Another Pair

PLAY vs SOHU: Head-to-Head Comparison

This page compares Dave & Buster's Entertainment, Inc. (PLAY) and Sohu.com Limited (SOHU) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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