Financial Survey: The9 (NCTY) versus Its Competitors

The9 (NASDAQ:NCTY) is one of 959 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its rivals? We will compare The9 to related businesses based on the strength of its earnings, risk, institutional ownership, dividends, profitability, analyst recommendations and valuation.

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	-629.75%	30.37%	-8.95%

Risk and Volatility

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

Analyst Recommendations

This is a breakdown of recent recommendations for The9 and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	1	0	0	0	1.00
The9 Competitors	5484	21117	44061	1449	2.58

As a group, “Software” companies have a potential upside of 275.51%. Given The9’s rivals stronger consensus rating and higher probable upside, analysts plainly believe The9 has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

0.5% of The9 shares are owned by institutional investors. Comparatively, 42.4% of shares of all “Software” companies are owned by institutional investors. 30.8% of The9 shares are owned by insiders. Comparatively, 19.7% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares The9 and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
The9	$15.43 million	-$57.55 million	0.78
The9 Competitors	$1.80 billion	$386.73 million	102.50

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.

The9 Company Profile

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.