Comparing The9 (NCTY) & Its Competitors
by Teresa Graham · The Cerbat GemThe9 (NASDAQ:NCTY – Get Free Report) is one of 957 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare The9 to similar companies based on the strength of its profitability, analyst recommendations, earnings, valuation, institutional ownership, dividends and risk.
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 | -627.52% | 24.64% | -9.06% |
Analyst Recommendations
This is a summary of current recommendations and price targets for The9 and its competitors, 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 competitors stronger consensus rating and higher probable upside, analysts plainly believe The9 has less favorable growth aspects than its competitors.
Risk and Volatility
The9 has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, The9’s competitors have a beta of 1.19, indicating that their average stock price is 19% more volatile than the S&P 500.
Institutional & Insider 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 company insiders. Comparatively, 19.8% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares The9 and its competitors 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 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.
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.