Reviewing The9 (NASDAQ:NCTY) & NU (NYSE:NU)

The9 (NASDAQ:NCTY) and NU (NYSE:NU) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Valuation & Earnings

This table compares The9 and NU”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$176.49 million	0.59	$2.82 million	N/A	N/A
NU	$8.27 billion	6.77	$1.03 billion	$0.40	29.36

NU has higher revenue and earnings than The9.

Profitability

This table compares The9 and NU’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The9	N/A	N/A	N/A
NU	17.12%	30.99%	4.82%

Insider & Institutional Ownership

0.5% of The9 shares are held by institutional investors. Comparatively, 84.0% of NU shares are held by institutional investors. 30.8% of The9 shares are held by insiders. Comparatively, 1.2% of NU shares are held by 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.

Volatility & Risk

The9 has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500. Comparatively, NU has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for The9 and NU, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	0	0	0	0	0.00
NU	1	4	5	0	2.40

NU has a consensus price target of $15.47, indicating a potential upside of 31.69%. Given NU’s stronger consensus rating and higher probable upside, analysts clearly believe NU is more favorable than The9.

Summary

NU beats The9 on 10 of the 12 factors compared between the two stocks.

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.

About NU

Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.