Critical Analysis: Code Chain New Continent (CCNC) and The Competition

Institutional and Insider Ownership

34.7% of Code Chain New Continent shares are held by institutional investors. Comparatively, 35.8% of shares of all “Entertainment” companies are held by institutional investors. 16.3% of Code Chain New Continent shares are held by company insiders. Comparatively, 23.8% of shares of all “Entertainment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Code Chain New Continent and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Code Chain New Continent	N/A	-16.61%	-10.20%
Code Chain New Continent Competitors	9.10%	-61.45%	-3.19%

Volatility & Risk

Code Chain New Continent has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Code Chain New Continent’s competitors have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Valuation & Earnings

This table compares Code Chain New Continent and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Code Chain New Continent	$25.03 million	-$26.97 million	-0.32
Code Chain New Continent Competitors	$4.17 billion	$76.31 million	13.33

Code Chain New Continent’s competitors have higher revenue and earnings than Code Chain New Continent. Code Chain New Continent is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Code Chain New Continent competitors beat Code Chain New Continent on 7 of the 9 factors compared.

About Code Chain New Continent

Code Chain New Continent Limited, through its subsidiaries, focuses on research, development, and application of Internet of Things (IoT) and electronic token digital door signs. It creates digital door signs which is the digitalization of a physical store by means of animation and other technical services; and offers electronic tokens, that are used for purchasing virtual real estate properties. The company also offers Wuge Manor, a game that combines Internet of Things and e-commerce based on code chain platform that provides players with access to vendors and business owners in approximately 100 cities in China. Code Chain New Continent Limited is based in Chengdu, China.