Contrasting Perella Weinberg Partners (NASDAQ:PWP) and The9 (NASDAQ:NCTY)

The9 (NASDAQ:NCTY) and Perella Weinberg Partners (NASDAQ:PWP) 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 institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for The9 and Perella Weinberg Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	0	0	0	0	0.00
Perella Weinberg Partners	1	0	2	0	2.33

Perella Weinberg Partners has a consensus price target of $25.33, suggesting a potential upside of 48.84%. Given Perella Weinberg Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Perella Weinberg Partners is more favorable than The9.

Earnings & Valuation

This table compares The9 and Perella Weinberg Partners”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$176.49 million	0.60	$2.82 million	N/A	N/A
Perella Weinberg Partners	$878.04 million	1.68	-$64.73 million	($1.58)	-10.77

The9 has higher earnings, but lower revenue than Perella Weinberg Partners.

Volatility and Risk

The9 has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Perella Weinberg Partners has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Insider and Institutional Ownership

0.5% of The9 shares are held by institutional investors. Comparatively, 41.1% of Perella Weinberg Partners shares are held by institutional investors. 30.8% of The9 shares are held by insiders. Comparatively, 31.8% of Perella Weinberg Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares The9 and Perella Weinberg Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The9	N/A	N/A	N/A
Perella Weinberg Partners	-7.37%	-72.27%	12.92%

Summary

Perella Weinberg Partners beats The9 on 8 of the 12 factors compared between the two stocks.

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 Perella Weinberg Partners

Perella Weinberg Partners, an independent investment banking company, provides strategic and financial advice services in the United States and internationally. The company offers advisory services related to strategic and financial decisions, mergers and acquisition execution, shareholder and defense advisory, and financing and capital solutions advice with resources focused on restructuring, liability management, and capital markets advisory, as well as underwriting and research services primarily for the energy and related industries. It serves public multinational corporations, mid-sized public and private companies, financial sponsors, individual entrepreneurs, private and institutional investors, creditor committees, and government institutions in consumer and retail; energy and energy transition; financial services and FinTech; healthcare; industrials and infrastructure; and technology, telecommunication, and media industries. Perella Weinberg Partners is headquartered in New York, New York.