Head-To-Head Contrast: The9 (NCTY) vs. Its Rivals

The9 (NASDAQ:NCTY) is one of 956 public companies in the “Software” industry, but how does it weigh in compared to its rivals? We will compare The9 to similar businesses based on the strength of its institutional ownership, dividends, risk, analyst recommendations, valuation, earnings and profitability.

Profitability

This table compares The9 and its rivals’ 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	-628.99%	24.78%	-9.06%

Volatility and Risk

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

Valuation and Earnings

This table compares The9 and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
The9	$15.43 million	-$57.55 million	0.61
The9 Competitors	$1.81 billion	$386.82 million	105.73

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for The9 and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	1	0	0	0	1.00
The9 Competitors	5562	21192	44232	1464	2.57

As a group, “Software” companies have a potential upside of 331.78%. Given The9’s rivals stronger consensus rating and higher possible upside, analysts clearly believe The9 has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

0.5% of The9 shares are held by institutional investors. Comparatively, 42.3% of shares of all “Software” companies are held by institutional investors. 30.8% of The9 shares are held by insiders. Comparatively, 19.9% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

The9 rivals 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.