Contrasting The9 (NASDAQ:NCTY) & Tuniu (NASDAQ:TOUR)

Tuniu (NASDAQ:TOUR) and The9 (NASDAQ:NCTY) 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 risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tuniu	1.09%	3.41%	1.84%
The9	N/A	N/A	N/A

Volatility and Risk

Tuniu has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, The9 has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500.

Insider and Institutional Ownership

0.5% of The9 shares are owned by institutional investors. 76.1% of Tuniu shares are owned by insiders. Comparatively, 30.8% of The9 shares are owned 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.

Valuation & Earnings

This table compares Tuniu and The9″s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tuniu	$70.37 million	1.04	$10.57 million	$0.02	31.17
The9	$15.31 million	5.58	-$10.06 million	N/A	N/A

Tuniu has higher revenue and earnings than The9.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Tuniu and The9, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tuniu	1	0	0	0	1.00
The9	1	0	0	0	1.00

Summary

Tuniu beats The9 on 6 of the 9 factors compared between the two stocks.

About Tuniu

Tuniu Corporation operates as an online leisure travel company in China. The company offers various packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services, as well as advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels, including tuniu.com website; mobile platform; a call center in Nanjing; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, the People's Republic of China.

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.