Reviewing The9 (NASDAQ:NCTY) and Nutex Health (NASDAQ:NUTX)

The9 (NASDAQ:NCTY – Get Rating) and Nutex Health (NASDAQ:NUTX – Get Rating) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Risk and Volatility

The9 has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, Nutex Health has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Profitability

This table compares The9 and Nutex Health’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
Nutex Health	-323.43%	-27.74%	-13.59%

Earnings & Valuation

This table compares The9 and Nutex Health’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$60.85 million	0.36	-$64.53 million	N/A	N/A
Nutex Health	$219.29 million	3.19	-$424.78 million	($1.05)	-1.02

The9 has higher earnings, but lower revenue than Nutex Health.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for The9 and Nutex Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	0	0	0	0	N/A
Nutex Health	0	0	2	0	3.00

Nutex Health has a consensus target price of $3.00, indicating a potential upside of 179.07%. Given Nutex Health’s higher possible upside, analysts plainly believe Nutex Health is more favorable than The9.

Institutional and Insider Ownership

2.8% of The9 shares are owned by institutional investors. Comparatively, 1.2% of Nutex Health shares are owned by institutional investors. 30.8% of The9 shares are owned by company insiders. Comparatively, 44.8% of Nutex Health shares are owned 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.

Summary

The9 beats Nutex Health on 6 of the 11 factors compared between the two stocks.

About The9

(Get Rating)

The9 Ltd. is engaged in the operation of online games. It operates through Greater China and Other Areas geographical segments. The firm is transitioning to cryptocurrencies mining business. The company was founded by Jun Zhu on December 22, 1999 and is headquartered in Shanghai, China.

About Nutex Health

(Get Rating)

Nutex Health, Inc. operates as technology-enabled healthcare services. It has two divisions: a Hospital Division and a Population Health Management Division. The company was founded in 2011 and is headquartered in Houston, TX.