Bitfarms (NASDAQ:BITF) & The9 (NASDAQ:NCTY) Head to Head Contrast

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

Volatility and Risk

Bitfarms has a beta of 3.68, meaning that its stock price is 268% more volatile than the S&P 500. Comparatively, The9 has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-69.08%	-22.17%	-18.93%
The9	N/A	N/A	N/A

Earnings and Valuation

This table compares Bitfarms and The9″s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$182.96 million	2.91	-$104.04 million	($0.36)	-3.08
The9	$176.49 million	0.55	$2.82 million	N/A	N/A

The9 has lower revenue, but higher earnings than Bitfarms.

Analyst Ratings

This is a summary of recent ratings for Bitfarms and The9, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	0	1	6	0	2.86
The9	0	0	0	0	0.00

Bitfarms currently has a consensus price target of $4.05, suggesting a potential upside of 264.86%. Given Bitfarms’ stronger consensus rating and higher possible upside, equities analysts clearly believe Bitfarms is more favorable than The9.

Insider and Institutional Ownership

20.6% of Bitfarms shares are owned by institutional investors. Comparatively, 0.5% of The9 shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by company insiders. Comparatively, 30.8% of The9 shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Bitfarms beats The9 on 7 of the 12 factors compared between the two stocks.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.

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.