The9 (NASDAQ:NCTY) & Perion Network (NASDAQ:PERI) Head-To-Head Contrast

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

Profitability

This table compares The9 and Perion Network’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
Perion Network	-1.12%	2.68%	2.13%

Institutional & Insider Ownership

0.5% of The9 shares are held by institutional investors. Comparatively, 68.1% of Perion Network shares are held by institutional investors. 30.8% of The9 shares are held by insiders. Comparatively, 2.8% of Perion Network shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$15.31 million	7.29	-$10.06 million	N/A	N/A
Perion Network	$498.29 million	0.86	$12.61 million	($0.12)	-79.67

Perion Network has higher revenue and earnings than The9.

Risk & Volatility

The9 has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Perion Network has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for The9 and Perion Network, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	1	0	0	0	1.00
Perion Network	1	1	4	0	2.50

Perion Network has a consensus price target of $14.00, indicating a potential upside of 46.44%. Given Perion Network’s stronger consensus rating and higher possible upside, analysts plainly believe Perion Network is more favorable than The9.

Summary

Perion Network beats The9 on 8 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 Perion Network

Perion Network Ltd. provides digital advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. It offers Wildfire, a content monetization platform; search monetization solutions, including website monetization, search mediation, and app monetization; and cross-channel digital advertising software as a service platform. The company also provides supply management platform; demand management platform for campaign planning and design; analytics platform, which provides information and performance insights; creative platform, a robust media platform; and an AI platform that uses machine learning to bring intelligence to the various phases of campaigns. In addition, it offers an actionable performance monitoring platform to support the various phases of campaign management; an online video player and integrated ad server to upload, manage, and stream video content; content monetization system, which integrates ads within the content layouts at the page level. Further, the company provides a publisher management system that provides analytics and performance optimization tools, as well as reports; search-demand management systems; monetization products that integrate and onboards demand vendors; and AI Systems. Additionally, it offers Intelligent HUB (iHUB), which connects the supply and demand sides of the marketplace; and strategic optimization of relevant traits (SORT), a provisional patent technology that eliminates the need for cookies. The company was formerly known as IncrediMail Ltd. and changed its name to Perion Network Ltd. in November 2011. Perion Network Ltd. was incorporated in 1999 and is headquartered in Holon, Israel.