The9 (NASDAQ:NCTY – Get Free Report) is one of 956 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its rivals? We will compare The9 to similar companies based on the strength of its analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Volatility and Risk
The9 has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500. Comparatively, The9’s rivals have a beta of 1.19, indicating that their average share price is 19% more volatile than the S&P 500.
Institutional and Insider Ownership
0.5% of The9 shares are owned by institutional investors. Comparatively, 42.3% of shares of all “Software” companies are owned by institutional investors. 30.8% of The9 shares are owned by insiders. Comparatively, 19.9% 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 is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The9 | 1 | 0 | 0 | 0 | 1.00 |
| The9 Competitors | 5564 | 21196 | 44249 | 1464 | 2.57 |
As a group, “Software” companies have a potential upside of 336.71%. Given The9’s rivals stronger consensus rating and higher possible upside, analysts plainly believe The9 has less favorable growth aspects than its rivals.
Valuation and Earnings
This table compares The9 and its rivals revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| The9 | $15.43 million | -$57.55 million | 0.56 |
| The9 Competitors | $1.82 billion | $387.60 million | 105.90 |
The9’s rivals have higher revenue and earnings than The9. The9 is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Profitability
This table compares The9 and its rivals’ 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 | -628.99% | 24.78% | -9.06% |
Summary
The9 rivals 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.
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