Analyzing NU (NYSE:NU) and The9 (NASDAQ:NCTY)

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

Institutional & Insider Ownership

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

Profitability

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

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

Analyst Ratings

This is a summary of current recommendations for NU and The9, as reported by MarketBeat.com.

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

NU currently has a consensus target price of $15.47, suggesting a potential upside of 34.32%. Given NU’s stronger consensus rating and higher possible upside, research analysts clearly believe NU is more favorable than The9.

Volatility & Risk

NU has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, The9 has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500.

Earnings and Valuation

This table compares NU and The9″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NU	$8.27 billion	6.64	$1.03 billion	$0.40	28.79
The9	$176.49 million	0.59	$2.82 million	N/A	N/A

NU has higher revenue and earnings than The9.

Summary

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

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.

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.