Qiwi (NASDAQ:QIWI) and The9 (NASDAQ:NCTY) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
Institutional and Insider Ownership
28.4% of Qiwi shares are owned by institutional investors. Comparatively, 0.4% of The9 shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Qiwi and The9’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Qiwi||$363.00 million||1.59||$53.24 million||$1.04||12.38|
|The9||$11.24 million||1.23||-$18.16 million||N/A||N/A|
Qiwi has higher revenue and earnings than The9.
Volatility and Risk
Qiwi has a beta of 2.8, indicating that its stock price is 180% more volatile than the S&P 500. Comparatively, The9 has a beta of 2.53, indicating that its stock price is 153% more volatile than the S&P 500.
This table compares Qiwi and The9’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for Qiwi and The9, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Qiwi presently has a consensus target price of $18.00, indicating a potential upside of 39.86%. Given Qiwi’s higher probable upside, research analysts plainly believe Qiwi is more favorable than The9.
Qiwi beats The9 on 10 of the 10 factors compared between the two stocks.
Qiwi Company Profile
Qiwi plc, together with its subsidiaries, operates electronic online payment systems primarily in the Russian Federation, Kazakhstan, Moldova, Belarus, Romania, the United Arab Emirates, and internationally. The company offers payment services across online, mobile, and physical channels through a network of approximately 109,000 kiosks and 43,000 terminals that run its proprietary software. It also provides Qiwi Wallet, which is an online and mobile payment processing, and money transfer system that allows customers to pay for the products and services of merchants, as well as perform peer-to-peer money transfers through a virtual wallet; and Visa-branded prepaid cards. In addition, the company offers payment-by installments card systems under the SOVEST brand name; and value added services. Qiwi plc was incorporated in 2007 and is based in Nicosia, Cyprus.
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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