Analyzing The9 (NASDAQ:NCTY) and Coinbase Global (NASDAQ:COIN)

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

Earnings & Valuation

This table compares The9 and Coinbase Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$179.05 million	0.67	$2.82 million	N/A	N/A
Coinbase Global	$3.11 billion	23.62	$94.87 million	$5.86	50.05

Coinbase Global has higher revenue and earnings than The9.

Profitability

This table compares The9 and Coinbase Global’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
Coinbase Global	29.76%	14.81%	0.41%

Volatility & Risk

The9 has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Coinbase Global has a beta of 3.34, indicating that its share price is 234% more volatile than the S&P 500.

Institutional and Insider Ownership

0.5% of The9 shares are owned by institutional investors. Comparatively, 68.8% of Coinbase Global shares are owned by institutional investors. 30.8% of The9 shares are owned by company insiders. Comparatively, 23.4% of Coinbase Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for The9 and Coinbase Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	0	0	0	0	0.00
Coinbase Global	1	9	10	0	2.45

Coinbase Global has a consensus price target of $255.22, suggesting a potential downside of 12.98%. Given Coinbase Global’s stronger consensus rating and higher probable upside, analysts plainly believe Coinbase Global is more favorable than The9.

Summary

Coinbase Global beats The9 on 11 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 Coinbase Global

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.