Head to Head Contrast: The9 (NASDAQ:NCTY) versus Tuniu (NASDAQ:TOUR)

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

Insider & Institutional Ownership

0.5% of The9 shares are held by institutional investors. 30.8% of The9 shares are held by company insiders. Comparatively, 76.1% of Tuniu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for The9 and Tuniu, as provided by MarketBeat.com.

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

Profitability

This table compares The9 and Tuniu’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
Tuniu	1.09%	3.41%	1.84%

Volatility & Risk

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$15.31 million	5.58	-$10.06 million	N/A	N/A
Tuniu	$70.37 million	1.03	$10.57 million	$0.02	30.94

Tuniu has higher revenue and earnings than The9.

Summary

Tuniu beats The9 on 6 of the 9 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 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.