The9 (NCTY) & Sothebys (BID) Financial Comparison

Sothebys (NYSE:BID) and The9 (NASDAQ:NCTY) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Sothebys 10.21% 21.41% 4.60%
The9 N/A N/A N/A

Insider and Institutional Ownership

0.9% of The9 shares are held by institutional investors. 15.8% of Sothebys 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, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sothebys $989.39 million 1.99 $118.79 million $2.25 17.82
The9 $11.24 million 0.90 -$18.16 million N/A N/A

Sothebys has higher revenue and earnings than The9.

Analyst Ratings

This is a summary of recent ratings for Sothebys and The9, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sothebys 0 2 1 0 2.33
The9 0 0 0 0 N/A

Sothebys currently has a consensus target price of $44.33, indicating a potential upside of 10.58%. Given Sothebys’ higher probable upside, analysts clearly believe Sothebys is more favorable than The9.

Risk and Volatility

Sothebys has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, The9 has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500.

Summary

Sothebys beats The9 on 8 of the 11 factors compared between the two stocks.

Sothebys Company Profile

Sotheby's operates as an auctioneer of authenticated fine art, decorative art, jewelry, wine, and collectibles in the United States, the United Kingdom, Hong Kong, China, Switzerland, France, and internationally. The company operates in two segments, Agency and Finance. The Agency segment accepts property on consignment; and matches sellers to buyers through the auction or private sale process. It is also involved in the sale of artworks; and operation of an auction house for investment-quality automobiles. The Finance segment offers art-related financing services, such as term loans secured by artworks that are not intended for sale. The company is also involved in the retail wine operations; licensing Sotheby's International Realty and related trademarks; and licensing its Sotheby's brand name for use in connection with the art auction business in Australia, and art education services in the United States and the United Kingdom. Sotheby's was founded in 1744 and is headquartered in New York, New York.

The9 Company Profile

The9 Limited, together with its subsidiaries, operates as an online game developer and operator in the People's Republic of China. The company offers online games, including massively multiplayer online games, mobile games, Web games, and TV games. It also provides training services, such as smartphone application programming training services to college students. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was founded in 1999 and is headquartered in Shanghai, the People's Republic of China.

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