Comparing Digihost Technology (NASDAQ:DGHI) and The9 (NASDAQ:NCTY)

Digihost Technology (NASDAQ:DGHI) and The9 (NASDAQ:NCTY) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Valuation and Earnings

This table compares Digihost Technology and The9″s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digihost Technology	$42.15 million	1.18	-$21.89 million	($0.54)	-2.53
The9	$176.49 million	0.67	$2.82 million	N/A	N/A

The9 has higher revenue and earnings than Digihost Technology.

Institutional and Insider Ownership

1.9% of Digihost Technology shares are owned by institutional investors. Comparatively, 0.5% of The9 shares are owned by institutional investors. 30.8% of The9 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Digihost Technology and The9’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digihost Technology	-41.33%	-36.00%	-25.95%
The9	N/A	N/A	N/A

Volatility and Risk

Digihost Technology has a beta of 5.68, meaning that its share price is 468% more volatile than the S&P 500. Comparatively, The9 has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Digihost Technology and The9, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digihost Technology	0	0	1	0	3.00
The9	0	0	0	0	0.00

Digihost Technology presently has a consensus target price of $2.50, suggesting a potential upside of 83.15%. Given Digihost Technology’s stronger consensus rating and higher possible upside, research analysts clearly believe Digihost Technology is more favorable than The9.

About Digihost Technology

Digihost Technology Inc. operates as a blockchain technology company in the United States and Canada. The company operates through Cryptocurrency Mining, Sales of Energy, and Colocation Services segments. It also mines for cryptocurrency; and supplies energy from power plants. Digihost Technology Inc. was incorporated in 2017 and is headquartered in Houston, Texas.

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.