The9 (NASDAQ:NCTY) versus Coinbase Global (NASDAQ:COIN) Financial Analysis

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

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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coinbase Global	$3.11 billion	23.82	$94.87 million	$5.86	50.48
The9	$25.22 million	3.80	$2.82 million	N/A	N/A

Coinbase Global has higher revenue and earnings than The9.

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

Analyst Ratings

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

	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 price target of $251.00, indicating a potential downside of 15.14%. Given Coinbase Global’s stronger consensus rating and higher probable upside, analysts clearly 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 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.