Financial Comparison: The9 (NASDAQ:NCTY) vs. Core Scientific (NASDAQ:CORZ)

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

Institutional and Insider Ownership

0.5% of The9 shares are held by institutional investors. 30.8% of The9 shares are held by insiders. Comparatively, 32.0% of Core Scientific shares are held 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 The9 and Core Scientific’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
Core Scientific	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for The9 and Core Scientific, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	0	0	0	0	0.00
Core Scientific	0	0	13	1	3.07

Core Scientific has a consensus target price of $18.38, indicating a potential upside of 16.14%. Given Core Scientific’s stronger consensus rating and higher probable upside, analysts plainly believe Core Scientific is more favorable than The9.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$25.22 million	3.97	$2.82 million	N/A	N/A
Core Scientific	$502.40 million	8.80	-$1.51 billion	($5.41)	-2.93

The9 has higher earnings, but lower revenue than Core Scientific.

Summary

Core Scientific beats The9 on 7 of the 9 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 Core Scientific

Core Scientific, Inc. provides digital asset mining services in North America. It operates through two segments, Mining and Hosting. The company offers blockchain infrastructure, software solutions, and services; and operates data center mining facilities. It also mines digital assets for its own account; and provides hosting services for other large bitcoin miners, which include deployment, monitoring, trouble shooting, optimization, and maintenance of its customers' digital asset mining equipment. In addition, the company provides electrical power, repair, and other infrastructure services to operate, maintain, and earn digital assets; and sells mining equipment to customers. Core Scientific, Inc. was founded in 2017 and is headquartered in Dover, Delaware.