Looking at core assets in China and the United States, which one is the cheapest?
WisdomTree's head of equity business Jeff Weniger compared the PEG ratios of core U.S. assets (Mag 7) and core Chinese assets (Terrific 10). The results showed that NVIDIA, Meituan, BYD, and SMIC are considered "cheap" stocks, while Apple, Tesla, NetEase, and Baidu are regarded as "expensive." Despite NVIDIA's high PE level, overall, the top ten outstanding companies in China still have the potential for excellent performance
WisdomTree's head of equity business Jeff Weniger compared the core assets of U.S. stocks (Mag 7) and the core assets of the Chinese stock market (Terrific 10) using PEG (comparing their 2026 PEG ratios, which is the price-to-earnings ratio for 2026 earnings divided by Wall Street's consensus on earnings growth for 2025 and 2026):
The results show that NVIDIA, Meituan, BYD, and Semiconductor Manufacturing International Corporation are considered "cheap" stocks, while "expensive" stocks include Apple, Tesla, NetEase, and Baidu. I intentionally used quotation marks because, from a PE perspective, NVIDIA's trading price is 36.8 times the earnings for fiscal year 2025 and 24.4 times the earnings for fiscal year 2026, which most people believe does not fit the characteristics of cheap stocks. Baidu's PEG ratio is "expensive," with a current price-to-earnings ratio of 8.5 times the earnings forecast for 2026. Importantly, observers may need to note that four companies in Mag 7 are still on the right side of the chart, while many Chinese companies are on the left side. Perhaps we can infer that due to this left-to-right image, the top ten outstanding Chinese companies as a whole still have room for continued strong performance.
