Contrasting The9 (NCTY) & Its Competitors

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

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 peers have a beta of 1.19, suggesting that their average share price is 19% more volatile than the S&P 500.

Profitability

This table compares The9 and its peers’ 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	-629.13%	24.70%	-9.06%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for The9 and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	1	0	0	0	1.00
The9 Competitors	5577	21206	44275	1464	2.57

As a group, “Software” companies have a potential upside of 340.17%. Given The9’s peers stronger consensus rating and higher probable upside, analysts clearly believe The9 has less favorable growth aspects than its peers.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
The9	$15.43 million	-$57.55 million	0.57
The9 Competitors	$1.82 billion	$387.59 million	106.38

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

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 company insiders. Comparatively, 19.8% of shares of all “Software” companies are held 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.

Summary

The9 peers 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.