Critical Comparison: The9 (NASDAQ:NCTY) and Digihost Technology (NASDAQ:DGHI)

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

Analyst Recommendations

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

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

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

Valuation & Earnings

This table compares The9 and Digihost Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$176.49 million	0.61	$2.82 million	N/A	N/A
Digihost Technology	$42.15 million	1.18	-$21.89 million	($0.54)	-2.53

The9 has higher revenue and earnings than Digihost Technology.

Profitability

This table compares The9 and Digihost Technology’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
Digihost Technology	-41.33%	-36.00%	-25.95%

Institutional & Insider Ownership

0.5% of The9 shares are held by institutional investors. Comparatively, 1.9% of Digihost Technology shares are held by institutional investors. 30.8% of The9 shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

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

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 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.