The9 (NASDAQ:NCTY) versus Digihost Technology (NASDAQ:DGHI) Financial Survey

Digihost Technology (NASDAQ:DGHI) and The9 (NASDAQ:NCTY) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

Digihost Technology has a beta of 5.68, suggesting that its stock price is 468% more volatile than the S&P 500. Comparatively, The9 has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500.

Insider and Institutional Ownership

1.9% of Digihost Technology shares are owned by institutional investors. Comparatively, 0.5% of The9 shares are owned by institutional investors. 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 stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Digihost Technology and The9, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digihost Technology	0	0	1	0	3.00
The9	0	0	0	0	0.00

Digihost Technology presently has a consensus target price of $2.50, suggesting a potential upside of 83.15%. Given Digihost Technology’s stronger consensus rating and higher probable upside, equities analysts plainly believe Digihost Technology is more favorable than The9.

Earnings & Valuation

This table compares Digihost Technology and The9″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digihost Technology	$42.15 million	1.18	-$21.89 million	($0.54)	-2.53
The9	$176.49 million	0.64	$2.82 million	N/A	N/A

The9 has higher revenue and earnings than Digihost Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Digihost Technology	-41.33%	-36.00%	-25.95%
The9	N/A	N/A	N/A

About Digihost Technology

Digihost Technology Inc. operates as a blockchain technology company in the United States and Canada. The company operates through Cryptocurrency Mining, Sales of Energy, and Colocation Services segments. It also mines for cryptocurrency; and supplies energy from power plants. Digihost Technology Inc. was incorporated in 2017 and is headquartered in Houston, Texas.

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.