Head-To-Head Survey: The9 (NASDAQ:NCTY) and BTCS (NASDAQ:BTCS)

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

Insider & Institutional Ownership

0.5% of The9 shares are owned by institutional investors. Comparatively, 3.5% of BTCS shares are owned by institutional investors. 30.8% of The9 shares are owned by insiders. Comparatively, 44.3% of BTCS shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares The9 and BTCS’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
BTCS	366.80%	-15.42%	-13.77%

Volatility & Risk

The9 has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, BTCS has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500.

Valuation and Earnings

This table compares The9 and BTCS”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	0.62	$2.82 million	N/A	N/A
BTCS	$2.08 million	16.39	$7.82 million	$0.41	4.88

BTCS has lower revenue, but higher earnings than The9.

Analyst Ratings

This is a summary of recent ratings and target prices for The9 and BTCS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	0	0	0	0	0.00
BTCS	0	0	1	0	3.00

BTCS has a consensus price target of $5.00, indicating a potential upside of 150.00%. Given BTCS’s stronger consensus rating and higher possible upside, analysts clearly believe BTCS is more favorable than The9.

Summary

BTCS beats The9 on 9 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 BTCS

BTCS Inc. operates in blockchain technology sector the United States. Its blockchain-infrastructure secures and operates validator nodes on disruptive blockchain networks, as well as validates transactions for crypto holding delegations on dPoS blockchains. The company offers StakeSeeker, a cryptocurrency dashboard and staking-as-a-service platform that allows crypto asset holders to earn rewards by participating in network consensus mechanisms; and Builder+, a Ethereum block builder offered to maximize validator earnings by utilizing algorithms to construct optimized blocks for on-chain validation. In addition, it is involved in the development of ChainQ, an AI-powered blockchain data and analytics platform, which allows users to query real-time and historical on-chain blockchain data. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2014 and is based in Silver Spring, Maryland.