Head to Head Contrast: The9 (NCTY) & Its Competitors

The9 (NASDAQ:NCTY) is one of 958 publicly-traded companies in the “Software” industry, but how does it compare to its competitors? We will compare The9 to similar companies based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Valuation and Earnings

This table compares The9 and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
The9	$15.43 million	-$57.55 million	0.70
The9 Competitors	$1.80 billion	$387.49 million	103.06

The9’s competitors have higher revenue and earnings than The9. The9 is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

0.5% of The9 shares are owned by institutional investors. Comparatively, 42.3% of shares of all “Software” companies are owned by institutional investors. 30.8% of The9 shares are owned by company insiders. Comparatively, 19.7% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

The9 has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, The9’s competitors have a beta of 1.19, suggesting that their average share price is 19% more volatile than the S&P 500.

Profitability

This table compares The9 and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The9	N/A	N/A	N/A
The9 Competitors	-628.49%	26.25%	-9.06%

Analyst Recommendations

This is a breakdown of current ratings and price targets for The9 and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	1	0	0	0	1.00
The9 Competitors	5511	21143	44145	1453	2.57

As a group, “Software” companies have a potential upside of 289.24%. Given The9’s competitors stronger consensus rating and higher probable upside, analysts plainly believe The9 has less favorable growth aspects than its competitors.

Summary

The9 competitors beat The9 on 9 of the 13 factors compared.

About The9

The9 Limited operates as a cryptocurrency mining business in China, Eastern Europe, Asia, and North America. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was incorporated in 1999 and is headquartered in Shanghai, the People’s Republic of China.