Head-To-Head Comparison: Tuniu (NASDAQ:TOUR) vs. The9 (NASDAQ:NCTY)

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

Insider and Institutional Ownership

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations 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

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

Valuation & Earnings

This table compares Tuniu and The9″s top-line 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	$81.70 million	1.09	-$10.06 million	N/A	N/A

Tuniu has higher earnings, but lower revenue than The9.

Volatility and Risk

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

Summary

Tuniu beats The9 on 5 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.