The9 (NCTY) vs. Its Competitors Head-To-Head Comparison

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

Volatility and Risk

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

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
The9	$15.43 million	-$57.55 million	0.65
The9 Competitors	$1.81 billion	$387.51 million	105.46

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

Analyst Recommendations

This is a summary of current recommendations 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	5537	21196	44257	1460	2.57

As a group, “Software” companies have a potential upside of 332.63%. Given The9’s peers stronger consensus rating and higher probable upside, analysts clearly believe The9 has less favorable growth aspects than its peers.

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	-627.52%	24.64%	-9.06%

Summary

The9 peers 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.