Analyzing The9 (NCTY) & Its Rivals

The9 (NASDAQ:NCTY) is one of 957 publicly-traded 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 dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Institutional & Insider Ownership

0.5% of The9 shares are held by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are held by institutional investors. 30.8% of The9 shares are held by insiders. Comparatively, 19.9% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

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

Analyst Ratings

This is a summary of current recommendations and price targets 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	5601	21221	44309	1467	2.57

As a group, “Software” companies have a potential upside of 335.80%. Given The9’s peers stronger consensus rating and higher possible 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	-628.12%	24.49%	-9.18%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
The9	$15.43 million	-$57.55 million	0.55
The9 Competitors	$1.81 billion	$386.84 million	106.00

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.

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.