Financial Contrast: The9 (NASDAQ:NCTY) versus Angi (NASDAQ:ANGI)

Angi (NASDAQ:ANGI) and The9 (NASDAQ:NCTY) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Angi	1.93%	2.06%	1.15%
The9	N/A	N/A	N/A

Volatility & Risk

Angi has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, The9 has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500.

Earnings and Valuation

This table compares Angi and The9″s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angi	$1.03 billion	0.25	$43.83 million	$0.41	15.67
The9	$107.90 million	0.69	-$57.55 million	N/A	N/A

Angi has higher revenue and earnings than The9.

Institutional and Insider Ownership

12.8% of Angi shares are owned by institutional investors. Comparatively, 0.5% of The9 shares are owned by institutional investors. 3.3% of Angi shares are owned by insiders. Comparatively, 30.8% of The9 shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Angi and The9, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angi	1	6	2	0	2.11
The9	1	0	0	0	1.00

Angi presently has a consensus target price of $11.00, suggesting a potential upside of 71.18%. Given Angi’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Angi is more favorable than The9.

Summary

Angi beats The9 on 9 of the 12 factors compared between the two stocks.

About Angi

Angi Inc. connects home service professionals with consumers in the United States and internationally. The company operates through three segments: Ads and Leads, Services, and International. It provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals, matches consumers with independently established home services professionals. The company's Ads and Leads segment connects consumers with service professionals for local services through nationwide network of service professionals in various service categories; provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, mobile, and magazine advertising to certified service professionals, as well as services and tools, including quoting, invoicing, and payment services. This segment provides consumers access to online True Cost Guide, which provides project cost information for various project types, as well as a library of home services-related content. Its Services segment offers a pre-priced offering, pursuant to which consumers can request services through Angi and Handy branded platforms and pay for such services on the applicable platform directly; and provides professionals with access to a pool of consumers seeking service professionals and must validate their home services experience, as well as attest to holding the requisite license(s) and maintain an acceptable rating to remain on Services platforms. The company's International segment operates Travaux, MyBuilder, MyHammer, Werkspo, and Homestars home services marketplaces. The company was formerly known as ANGI Homeservices Inc. and changed its name to Angi Inc. in March 2021. The company was incorporated in 2017 and is headquartered in Denver, Colorado. Angi Inc. operates as a subsidiary of IAC Inc.

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.