Head-To-Head Analysis: The9 (NASDAQ:NCTY) & NU (NYSE:NU)

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

Risk & Volatility

The9 has a beta of 2.08, meaning that its share price is 108% 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 Recommendations

This is a summary of recent ratings for The9 and NU, as reported 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 target price of $15.47, suggesting a potential upside of 33.16%. Given NU’s stronger consensus rating and higher probable upside, analysts plainly believe NU is more favorable than The9.

Institutional & Insider Ownership

0.5% of The9 shares are owned by institutional investors. Comparatively, 84.0% of NU shares are owned by institutional investors. 30.8% of The9 shares are owned by company insiders. Comparatively, 1.2% of NU shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares The9 and NU”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$176.49 million	0.63	$2.82 million	N/A	N/A
NU	$8.27 billion	6.69	$1.03 billion	$0.40	29.04

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%

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.