The9 (NASDAQ:NCTY) and LYFT (NASDAQ:LYFT) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Insider and Institutional Ownership

0.1% of The9 shares are held by institutional investors. Comparatively, 61.5% of LYFT shares are held by institutional investors. 30.8% of The9 shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares The9 and LYFT’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The9 $50,000.00 371.34 -$25.54 million N/A N/A
LYFT $3.62 billion 2.39 -$2.60 billion ($9.90) -2.84

The9 has higher earnings, but lower revenue than LYFT.

Volatility and Risk

The9 has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, LYFT has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.

Profitability

This table compares The9 and LYFT’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
LYFT -49.05% -44.10% -23.48%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for The9 and LYFT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The9 0 0 0 0 N/A
LYFT 0 12 29 0 2.71

LYFT has a consensus target price of $49.37, indicating a potential upside of 75.38%. Given LYFT’s higher probable upside, analysts plainly believe LYFT is more favorable than The9.

Summary

The9 beats LYFT on 7 of the 11 factors compared between the two stocks.

The9 Company Profile

The9 Limited, together with its subsidiaries, operates as an online game developer and operator in the People's Republic of China. The company offers online games, including massively multiplayer online games, mobile games, Web games, and TV games. It also provides training services, such as smartphone application programming training services to college students. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was founded in 1999 and is headquartered in Shanghai, the People's Republic of China.

LYFT Company Profile

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It provides Ridesharing Marketplace, which facilitates lead generation, billing and settlement, support, and related activities to enable drivers to provide their transportation services to riders. The company also offers a network of shared bikes and scooters in various cities to address the needs of riders for shorter routes; Express Drive program, a flexible car rentals program which connects drivers who need access to a car with third-party rental car companies; and concierge for organizations to manage the transportation needs of their customers and employees. In addition, it integrates third-party public transit data into the Lyft app to offer various enterprise programs, including monthly ride credits for daily commutes, supplementing public transit by providing rides for the first and last leg of commute trips, late-night rides home, and shuttle replacement rides. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

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