The9 (NASDAQ:NCTY) and Angi (NASDAQ:ANGI) Critical Survey

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$107.90 million	0.69	-$57.55 million	N/A	N/A
Angi	$1.03 billion	0.23	$43.83 million	$0.41	14.51

Angi has higher revenue and earnings than The9.

Volatility & Risk

The9 has a beta of 2.14, indicating that its share price is 114% more volatile than the S&P 500. Comparatively, Angi has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.

Profitability

This table compares The9 and Angi’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
Angi	1.93%	2.06%	1.15%

Analyst Ratings

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

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

Angi has a consensus target price of $11.00, suggesting a potential upside of 84.87%. Given Angi’s stronger consensus rating and higher probable upside, analysts plainly believe Angi is more favorable than The9.

Insider and Institutional Ownership

0.5% of The9 shares are owned by institutional investors. Comparatively, 12.8% of Angi shares are owned by institutional investors. 30.8% of The9 shares are owned by insiders. Comparatively, 3.3% of Angi shares are owned by 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

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

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.

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.