NU (NYSE:NU – Get Free Report) and The9 (NASDAQ:NCTY – Get Free Report) 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
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 VĂ©lez 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.
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