The9 (NCTY) and Its Peers Financial Contrast

The9 (NASDAQ:NCTY) is one of 957 publicly-traded companies in the “Software” industry, but how does it contrast to its competitors? We will compare The9 to related companies based on the strength of its earnings, dividends, institutional ownership, analyst recommendations, valuation, profitability and risk.

Valuation and Earnings

This table compares The9 and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
The9	$15.43 million	-$57.55 million	0.58
The9 Competitors	$1.83 billion	$385.25 million	110.71

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, 42.1% of shares of all “Software” companies are owned by institutional investors. 30.8% of The9 shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

The9 has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, The9’s competitors have a beta of 1.26, suggesting that their average stock price is 26% 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	-628.61%	17.49%	-9.04%

Analyst Recommendations

This is a summary of recent recommendations for The9 and its competitors, 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	5629	21287	44419	1479	2.57

As a group, “Software” companies have a potential upside of 323.03%. Given The9’s competitors stronger consensus rating and higher possible upside, analysts clearly 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.