The9 (NCTY) and Its Rivals Head-To-Head Review

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

Institutional & Insider 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, 19.8% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets 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	5571	21202	44265	1464	2.57

As a group, “Software” companies have a potential upside of 335.51%. Given The9’s rivals stronger consensus rating and higher possible upside, analysts plainly believe The9 has less favorable growth aspects than its rivals.

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

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
The9	$15.43 million	-$57.55 million	0.56
The9 Competitors	$1.81 billion	$387.59 million	105.89

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.

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.