Head-To-Head Survey: The9 (NASDAQ:NCTY) & Coinbase Global (NASDAQ:COIN)

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

Volatility and Risk

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coinbase Global	29.76%	14.81%	0.41%
The9	N/A	N/A	N/A

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coinbase Global	$5.25 billion	14.84	$94.87 million	$5.86	53.07
The9	$25.22 million	4.75	$2.82 million	N/A	N/A

Coinbase Global has higher revenue and earnings than The9.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Coinbase Global and The9, as provided by MarketBeat.com.

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

Coinbase Global currently has a consensus target price of $255.22, indicating a potential downside of 17.93%. Given Coinbase Global’s stronger consensus rating and higher possible upside, research analysts clearly believe Coinbase Global is more favorable than The9.

Insider and Institutional Ownership

68.8% of Coinbase Global shares are held by institutional investors. Comparatively, 0.5% of The9 shares are held by institutional investors. 23.4% of Coinbase Global shares are held by company insiders. Comparatively, 30.8% of The9 shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Coinbase Global beats The9 on 11 of the 12 factors compared between the two stocks.

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.

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.